Know From a Pro: Business Fraud

With the holiday season approaching in earnest, both consumers and businesses should be on high alert for attempted fraud attacks. As we head into October, which is designated as National Cybersecurity Awareness Month, our goal is to focus in on how businesses can recognize and fight back against fraud.

Jeff Snow, Mabrey Bank’s Director of BSA, Fraud & Security, SVP, is an expert on financial fraud with a more than 20-year career in banking, including the last four at Mabrey. We caught up with Jeff to chat about how businesses can remain secure against fraud and offer up both some preventative and reactive solutions.

1) Thanks so much for your time, Jeff. We’ll start here…what are key signs and red flags that businesses should be vigilant about to recognize fraudulent behavior? 

Jeff: One of the biggest red flags for businesses are emails received that include changes to payment instructions. Business email compromise is a major issue right now with criminals hacking into email accounts and using that access to redirect payments to fraudulent accounts.

Another sign or red flag of possible fraud via email could be when a “vendor” reports they are missing a payment. This should serve as a recognizable warning sign if an email like this is unexpected.

2) Are there any emerging or particularly damaging trends you have seen recently when it comes to corporate fraud victimizing businesses? 

Jeff: Mail theft and the resulting check fraud has become a big problem for banks and businesses. Check payments sent through the mail are often stolen out of mailboxes, dropoff boxes, or even by postal service employees themselves.

The stolen checks are then altered to new payees with different amounts and can be duplicated for use in other fraud schemes.

3) In the unfortunate event that fraud does occur to a business, what are some immediate steps that a business can take to keep the problem from exacerbating? 

Jeff: Any fraud discovered should be reported to that business’ bank immediately. In some cases, the bank can recover funds lost in a fraud scheme, but timing is critical and every minute counts.

Bank personnel can walk you through steps to prevent future fraud like changing online passwords, closing compromised accounts and opening new ones, etc. Businesses can call our main number at (888) 272-8866, and our in-house Customer Service team can direct you.

4) What are some best practices and practical tips for businesses to protect their assets and accounts from fraud? 

Jeff: Firstly, when possible, limit check writing and use electronic methods for the payment of bills and invoices. Don’t be intimidated by technology! Digital payments are often quicker, easier and ultimately more secure than physical checks delivered by mail. Discover Mabrey Digital Banking for your business here.

Another easy step for a business is when receiving new payment instructions or changes to existing instruction via email, it’s always smart to call and speak to someone you know to verify those payment details. This second method of verification should help root out the basic business email compromise attempts.

Finally, cyber insurance coverage is available and should be considered.

5) What tools and resources does Mabrey Bank offer to businesses to help recognize, combat and prevent fraud? 

Jeff: If a business does write checks, it should use Positive Pay to prevent check fraud, which is a product I highly recommend. Positive Pay allows bank customers to upload lists of legitimate checks with payee names, amounts and check numbers. Checks presented for payment are then compared to the lists by the bank for verification.

At Mabrey, we offer this at no cost to our business customers, and it’s the best tool to prevent check fraud as checks that are not listed in Positive Pay are returned unpaid. We also offer a similar service for ACH payments.

Online Bill Pay through Mabrey Digital Banking is a great way to pay bills without writing and mailing checks and is always secure.

If a business is interested in any of these resources at Mabrey, don’t hesitate to reach out to our Treasury Services department via phone at (918) 366-1440 or by filling out our contact form and selecting “Treasury Services” from the dropdown menu.

READ ALSO: Tips to Keeping Cyber Secure

TULSA – To continue the bank’s reputation of high-quality customer service and excellent financial solutions, Mabrey Bank announced today the promotion of Mark Mabrey to East Central Oklahoma Regional President, SVP. Mark, a member of the fourth generation of the Mabrey family to lead Mabrey Bank, moves into the role after previously serving as the Market President of Okmulgee.

“I am excited to step into this role and continue the growth of what our team and family has been doing in this region specifically,” said Mark Mabrey. “Serving our rural communities is a passion of mine, and I enjoy forming generational relationships with our customers that go beyond the walls of the bank.”

Mark is a 2006 alumnus of Oklahoma State University and is a graduate of consumer lending, commercial lending, and intermediate school of banking through the Oklahoma Bankers Association. Joining Mabrey Bank as a Lender in 2010, Mark has developed a foundation of superior care and sound advice with his clients in East Central Oklahoma leading to a track record of financial success. In 2018, Mark furthered his education with a graduate degree from the Pacific Coast Banking School at the University of Washington.

Away from the bank, Mark is active in the East Central Oklahoma community as a member of the Morris School Board, YMCA of Greater Tulsa Board member and serves as a Commissioner for the Oklahoma Wildlife Conservation Commission.

Mark moves into his new role following the retirement of former East Central Regional President, John Fidler, who served at Mabrey Bank for nearly 40 years.

In the midst of our ongoing Summer Loan campaign at Mabrey, this month’s Know From a Pro highlights the work our Credit Administration department does to ensure efficient and clear communication to customers regarding their loans. While much of the process happens behind the scenes, it doesn’t diminish the importance when it comes to equipping our customers with the appropriate knowledge for the approval and repayment of their loans.

For this piece, we caught up with our own Mary Pittman, the Director of Credit Administration, SVP. Mary is an invaluable asset at Mabrey, starting her career in banking 35 years ago, five of which have been spent at Mabrey.

Let’s jump into what you need to know on Credit Administration.

1) How does the Credit Administration department at Mabrey interact with customers when it comes to processing and servicing loans?

At Mabrey Bank, Credit Administration handles the processing, servicing and documentation of all of the bank’s commercial and consumer loans. Our internal customers consist of the Lenders and Loan Assistants we serve here at the bank, while our external customers are those outside of Mabrey who are approved for and receive loans. We interact directly with both our internal and external customers during the life of a loan, most often through the processing and servicing.

To our internal customers, phone calls and emails are the most likely methods employed by my team as we work alongside with our Lending Line to care for our external customers. My Loan Servicing team is also always available to receive calls from our external customers inquiring about their loan account, to make payments or payoff their loan.

2) What is the relationship between the Credit Admin team and the Lending Line when it comes to executing a loan for an external customer?

My Loan Processing team partners with the Lending Line to create the loan documents for the customer to execute. We take a lot of pride in being timely to meet the closing deadline requested by the customer and to provide complete and accurate documents for the Lending Line.

3) What sort of communication can a customer expect from your team throughout the life of a loan? 

Customers receive billing notices according to the terms of the promissory note. I would say that 98% of our loans are on monthly repayment, which means a billing notice is generated 10 days before the payment due date. As a courtesy, if the payment is not made within 10 days of when due, then a late notice is mailed. At 30 days past due, then another late notice is sent that includes the SCRA (Service Members Civil Relief Act) notice to inform our military customers of their rights.

However, Home Equity Lines of Credit (HELOC) loans require the billing statement be provided 15 days before the payment is due in accordance with Regulation Z, a government-mandated set of rules that helps protects consumers against unlawful lending practices. The late notice requirements remain the same at 10 days and 30 days past due, along with the SCRA notice.

4) Are there any common misconceptions or questions you often get from customers related to loans?

Most often, we receive questions regarding escrow accounts on consumer real estate loans. This is a complicated process that we take great care to educate our customers on the why, when, and how escrow works and the benefits of using an escrow account, which is a monthly contribution to the customer’s account held to pay the annual real estate taxes and hazard insurance.

The customer pays the monthly payment, which includes both the required portion distributed to the escrow account and the interest and principal due on the loan.

5) What differentiates Mabrey’s Credit department when walking alongside a customer through their loan journey?

In today’s modern world, all banks offer the same products. What differentiates one bank from another is the service provided. Our mission at Mabrey includes ‘EXCEEDing’ our customer’s expectations. This is our mission in Credit Administration as well with both our internal and external customers.

We partner with the Lending Line to help them EXCEED customer expectations by providing timely and accurate documents and information along with efficient processes. We ask for feedback and collaborate with our Lending Line partners, along with other departments of the bank, to always improve upon what we do and how we do it.

To create a better classroom experience for students and teachers across the region, Mabrey Bank is hosting its third annual School Supply Drive from Monday, July 10, through Friday, July 21 at each of its full-service locations. Supplies received at each location will benefit a specific organization or school district located within that community to maximize our local impact.

Donations can be dropped off during normal branch hours through a school supply drop box in the lobby at each Mabrey branch. While any and all types of school supplies are appreciated and accepted, customers can check in with their local branch to see if any specific supplies are needed, as different schools and communities might have different needs.

Last year, Mabrey was able to donate around 4,000 school supplies through the drive thanks to generous donations from customers and team members. See which organization or school that each Mabrey Bank location will be benefitting through our 2023 School Supply Drive.

LOCATION – ORGANIZATION

Bixby (Main & North) – Bixby Outreach Center
Glenpool – Glenpool Public Schools
Haskell – Haskell Public Schools
Morris – Morris Public Schools
Muskogee – Irving Elementary
Oklahoma City- Positive Tomorrows
Okmulgee (Both Locations) – Okmulgee Public Schools
Tulsa (Broken Arrow, Jenks, Midtown & Yale) – The Pencil Box
Weleetka – Weleetka Public Schools
Wetumka – Wetumka Public Schools

Mabrey Bank digital banking recently got a big upgrade that helps our customers manage all their Mabrey accounts alongside their external accounts directly from the Mabrey banking portal. Whether on your desktop or through your Mabrey Bank app on your mobile device, Mabrey customers can now link and view their financial accounts including mortgages, credit cards and other bank accounts inside of their Mabrey online banking with Money Manager.

To give us the full rundown of the information, how to’s and benefits of Money Manager, we caught up with Director of Banking Operations, VP, Erin Melton, who has been with Mabrey Bank for nearly 18 years.

1) What is Money Manager?

Money Manager is an organizational tool inside of Mabrey’s suite of digital banking products that allows customers an easy and efficient way to control their budgeting, spending and saving to hit their financial goals. Using Money Manager makes managing your finances smarter by tracking and categorizing every purchase, fitting those into a budget you have set and showing the progress you make towards saving.

Money Manager comes at no cost to all Mabrey customers and is automatically available through your digital banking portal on your desktop or on your Mabrey mobile app. Finding Money Manager is easy. Select “Money Manager” in the main menu dropdown from the top left corner of the Mabrey app to get started. Or, Money Manager can be found by selecting an account inside of digital banking on a desktop. Money Manager will be one of the blue icons to the right of your account transactions.

For more information on Money Manager, click here.

2) How can I better control my spending in Money Manager?

Money Manager automatically tags and tracks each of your transactions and will label them given their specific category, such as transportation, groceries, utilities and many more. You decide which categories you’d like Money Manager to track for you, and it will do the rest. Once you have built up a history of transactions, it can break down your spending weekly, monthly or even over a six-month time period.

You can set a budget for a category, and Money Manager will alert you if you near the spending limit you have set for that category in a given day, week or month. This allows you to make informed spending choices and know how a transaction will affect your budget. Setting a debt reduction or savings goal in Money Manager can help you visualize your progress daily.

3) How do I link an external account or card?

A recent update to Money Manager now allows you to link external (non-Mabrey Bank) mortgages, credit cards and bank accounts inside your Mabrey Bank portal, free of charge. Now you can view all your accounts conveniently in one location. Once you link your accounts, your Mabrey Bank accounts will appear BLUE while your external accounts will appear GRAY in the account dashboard.

STEPS TO LINK EXTERNAL ACCOUNTS

• Open your Mabrey Bank app or Login to your online banking on your desktop.
• Click the three dots in the upper right corner, next to Accounts, and select “Link an account.” If you do not see this option, please ensure you have downloaded the latest version of the Mabrey Bank app from the Apple store or Google Play store.
• Follow the prompts to review and re-link your existing accounts or link new accounts.
• Close your Mabrey Bank app and re-open it to see the newly linked accounts.

A user can also link an account from the menu bar while inside of Money Manager by selecting “Link Account.”

4) What is the benefit to linking my non-Mabrey Bank accounts and cards in Money Manager?

In addition to having more visibility to all of your accounts in one location, Money Manager will incorporate your external accounts into its budgeting, spending and saving tools allowing you an all-encompassing look at your finances. Imagine seeing your mortgage, car loan and credit card balances right next to your checking and savings account balances in one single app. That’s how Mabrey Bank is making our customers’ lives easier with Money Manager.

Linking these external accounts will also add a layer of security. By setting up alerts for large transactions or transactions from specific retailers, you now have more control than ever before to combat fraud or excessive spending.

5) Are there any limitations to linking my non-Mabrey accounts?

While you get added visibility and the rest of the money management features inside of Money Manager, a customer is not able to move money between Mabrey and external accounts, or visa-versa, with Money Manager. Account transfers can be set up, however, in the “Transfers” tab inside of Mabrey Bank’s digital banking portal.

Users will also not be able to transact directly with any linked external accounts inside of Mabrey Bank’s digital banking portal.

Summer is the season of sun, activities, travel and family fun. That could mean needing a loan for a new car, boat or RV to take that special vacation you have always wanted to go on. To obtain a loan, you need to avoid the dings and dents to your credit which can lower your score and making acceptance that much tougher.

We gathered some intel and included some tips from our Consumer Loans team to provide you with a few ways that you can work with us to keep your credit score acceptable and application process free of debris – especially if you want to take advantage of Mabrey’s Summer Loan Special on a new car, motorcycle, boat or RV.

Learn more: 2023 Summer Loan Special

1) Stay Responsible with Payments

Ultimately, the easiest thing to do to maintain and grow your credit score is paying the agreed upon amount of your loans each month for the duration of the loan. In this case, slow and steady can indeed win the race. Whether it’s your mortgage, car note or a credit card, showing past and present responsibility, consistency and dependability is what banks and credit bureaus are looking for when you apply for a loan.

If you have shown a documented history of responsibility with your money and the contracts you have signed to pay your loans back, banks will be much more willing to let you borrow more, if your monthly income can sustain payments. Paying off your credit card balances regularly, or at the least keeping your balances to less than 30% of your available credit can leave a paper trail of responsibility on paying your debts.

Helpful tip: Try setting up your loans on an auto-draft payment. The quickest way for the payment to be applied is for it to come from an account within the same institution, but there should be an option to set up auto-draft payments from another bank as well. If you prefer to make your payments manually, set calendar appointments to make sure you don’t miss them. Many times, lenders can select a payment date upon request so that it lines up with or is a day after you get paid.

2) Be Proactive with Communication

Being late on a payment, or missing one entirely, is a recipe for your credit score to fall. If you think you might not be able to make a payment on time, contact your lender in advance. Not only will this show a strong sense of accountability, but lenders will often work with you to avoid a dent in your credit score.

While communication with your lender is important, communicating with credit bureaus is another way to show you are proactive. You are allowed one free credit report every 12 months from each of the three major bureaus (Equifax, Experian and TransUnion). Requesting and accessing your reports will show you every peak and valley your credit score experienced throughout the year. Knowing this information can keep you from repeating mistakes that drop your score.

Helpful tip: Having past due payments can greatly affect getting approved for a loan in the future. Once you get behind, it can be hard to get caught back up again. Lenders are not just here to collect payments, we are here to help and guide you to meet your financial needs. Sometimes we can move a payment due date and sometimes we may need to defer a payment for you. Keeping us in the loop is best for both you and the bank.

Since you can order copies of your credit report from three bureaus, why not use that to your advantage and request those quarterly? Order from one in April, one in August and one in December. Just spread them out throughout the year so you constantly know where you stand, and you aren’t completely in the dark any time you apply for credit.

3) Get Ahead on your Balances

Staying ahead on your loans is easier said than done, but a little can go a long way towards boosting your credit score. Making a slightly larger payment on your due date, or submitting your monthly payment early are two good ways to raise your score. Be careful however, paying off a loan too quickly or with too large of payments can actually do more harm than good to your score. For more information on this, check out some basic Consumer Loan tips courtesy of our experts at Mabrey.

Helpful tip: Is your monthly payment $250? Pay $275. Is your payment due on the 15^th of the month? Try paying on the 1^st. Again, sometimes you can select a payment due date for your loan, so maybe select it later than you plan to pay it. These little adjustments can give the slight boost you need to your score that could be the difference between you qualifying for a special rate loan or not.

With a heightened level of interest surrounding banks and deposit insurance, we caught up with Laura Zigler, Director of Treasury Services for Mabrey Bank, to get a primer on what exactly the FDIC does and why it’s important to customers that their bank is a member.

Laura has been the Director of Mabrey’s Treasury Department since 2019 and has been with the bank a total of 16 years. She is well-versed in providing Mabrey’s customers and businesses with the best products to ensure their deposits are safe and well-placed.

1) What is the Federal Deposit Insurance Corporation (FDIC), and how does it protect my money at the bank?

Created during the Great Depression in the 1930s, the Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government. At the time of its creation, the American financial climate was volatile as panicked customers would put an otherwise healthy bank at risk of failing by taking all of their deposits out of the bank at once.

The FDIC was established to help curtail this behavior, promoting confidence in the U.S. banking system by protecting depositors of insured banks across the nation against the loss of their deposits in the event an insured bank fails.

Mabrey Bank is a proud member of the FDIC.

2) What does the FDIC do when an insured bank fails, and how has it been historically successful?

If an FDIC insured bank fails, the FDIC pays depositors up to the insured limit. The FDIC acts immediately once there has been a bank failure ensuring depositors have access to their funds promptly. History has shown, the FDIC pays insurance within a few days after a bank closing, typically as soon as the next business day.

The depositor can expect a new account to be opened at another FDIC insured bank with a deposit made in an amount equal to the insured balance of their account at the failed bank. Or the FDIC may simply issue a check to each depositor for the insured balance of their account at the failed bank.

If the depositor has funds over the insured FDIC amount, they may still be able to recover funds. Once the bank has failed, the FDIC assumes the position of managing assets, debts and handling claims for deposits in excess of the insured limit. During this process the depositor may recover some portion of their uninsured funds from the proceeds from the sale of the failed banks assets. However, this can take several years by which the depositor would receive periodic payments on their remaining claim.

FDIC insurance is backed by the full faith and credit of the United States government and since they began operations in 1933, no depositor has lost a penny of FDIC-insured deposits.

3) How much does the FDIC insure per depositor?

FDIC coverage amounts will vary due to several factors based on depositor ownership categories. The standard insurance coverage amount is $250,000 per depositor, per insured bank, for each account ownership category.

Depositors may qualify for separate coverage for deposits held in different account ownership categories when all FDIC requirements are met. This means some depositors may qualify for additional coverage at the same FDIC-insured bank.

4) Are there any costs associated with FDIC coverage or restrictions on coverage?

You do not have to purchase deposit insurance. When you open a deposit account in any FDIC-insured bank, you are automatically covered up to $250,000.

It is important to note that there are some types or accounts such as stocks, bonds, municipal bonds, other securities, annuities, insurance products and safe deposit box contents that may not qualify for FDIC insurance.

Since not all deposits may be covered, we recommend if depositors have questions regarding coverage to visit with your banker or go directly to FDIC.gov to find additional deposit insurance information, determine if your Bank is FDIC insured, calculate your coverage by using the electronic deposit insurance estimator (EDIE), as well as find contact information for FDIC assistance. There are deposit insurance experts available at 1-877-ASK-FDIC seven days a week to help with your specific deposit situations.

5) How can I access coverage of my deposits at Mabrey if I exceed the FDIC’s $250,000 limit?

Thanks to Mabrey Bank’s membership in the IntraFi network, you can obtain additional FDIC insurance coverage by placing your funds in a Certificate of Deposit Account Registry Service (CDARS) or Insured Cash Sweep (ICS) account(s) conveniently while still banking at Mabrey.

When we place your funds through the CDARS or ICS service, that deposit is divided into amounts under the standard FDIC insurance maximum of $250,000. The funds are then placed in Certificate of Deposits (using CDARS), Demand Deposit Accounts or Money Market Deposit Accounts (using ICS), at multiple banks. As a result, you can access coverage from many institutions while working directly with just Mabrey Bank.

You will receive one monthly statement from our bank for each service in which you participate, and, as always, your confidential information is protected. For additional information on these programs please visit intrafi.com or contact Mabrey Bank at (888) 272-8866.

Our Know From a Pro series is back as we dive into consumer loans. Whether a loan is for a home, vehicle, or just for some extra cash on hand, you’ll need to apply and be approved. To get an inside look at the process of a loan and what you can do to increase your chance at being approved, we spoke to Leila Vickers, our Consumer Loan Officer, AVP, who regularly engages with our customers on loans.

Leila has been with Mabrey Bank since August of 2015, working her way up to the role she is in now. In 2021, Leila won an EXCEED Award for her above and beyond work serving Mabrey customers.

Let’s jump right in!

1) Receiving a consumer loan for a home, car or just a personal loan involves an application process for approval. What homework can applicants do before and during the application process that might make it easier to apply and be approved for a loan?

The key to being approved for a loan is all in the preparation, and you can never start too early. Preparing BEFORE you need a loan is the best practice, if possible. Having good banking relationships at your financial institution will help tremendously when you apply for a consumer loan.

For most loans you will need both good credit history and some cash for a down payment. The best thing for your credit history is making your payments ON TIME. If you don’t have credit yet, a type of loan you can start with to build credit without credit history would be a “cash secured loan,” which means using the money you have at your financial institution as collateral for your loan.

When you are ready to apply, here’s what we look for:

• Reliability/Relationship – If you already have a great banking history with your bankers and have proven to be reliable, we are more likely to consider your loan for approval.
• Steady and adequate income
• Steady residence and employment history
• Down payment (if applicable)
• Proof of income such as paystubs, W2s or tax returns

2) An important piece of the loan application process is proof of income. When reviewing an application, what sources of income are you looking for and how can applicants increase their chances of a loan being approved through proof of income?

When it comes to income, we want to not only see that you are making enough to be able to repay the loan you are requesting, but that your income is steady, just like the payments on your loan will need to be.

One great thing about Mabrey Bank is that we do have the ability to work with various income types that other banks or mortgage companies may not. The proof of income needed can vary based on the loan requested. One of the easiest ways for us to verify income is if you have a checking account with us where your direct deposit is credited to. Having that established banking relationship will help your ability to secure the loan.

3) The federal interest rate has been climbing over the last year, as banks base their own rates off that federal rate. How do those changes affect the rate attached to a consumer loan on both a daily basis and over the term of the loan?

The interest rate on your loan depends on when you apply and what your credit score is. Once your rate is determined, there should be a period of time, depending on the loan type, where that rate does not change – called a fixed rate. Most of our consumer loan products keep a fixed rate until you pay it in full. Exceptions to this are home equity lines of credit (HELOC) and adjustable-rate mortgages (ARM). The rates for these loans would be explained to you by a loan officer before you formally apply for that specific loan type.

Personal loans including car, boat, tractor, etc. should have a fixed rate which will be made known to you as soon as we pull your credit report, so there are no surprises. You should know your interest rate and monthly payment before you sign your loan documents, agreeing to those terms.

If you are wanting to buy a home, I would try to research the rate environment and economic predictions from trusted sources.

4) A borrower’s credit score not only impacts the possibility of a loan being approved and the rate of the loan but can also change throughout the course of the loan based on the timing and amount of payments made. How can a credit score go up or down over the course of a loan?

Loans are essentially an agreement between you as the consumer and the bank. By signing your loan documents, you are agreeing to pay exactly how those documents require you to pay. If your monthly payment is $200, due on the 15^th of every month, you must pay at least $200 on the 15^th of every month. If you follow that agreement, your credit score should improve over time.

The best way to increase your score is to do it subtly. Subtly increased payments early = subtly increased score. For the example above, paying $225 on the 1^st of every month can reflect positively on your credit score as early as 6 months into the loan. How much improvement your credit score shows depends on how bad it was to begin with. Consumers with more room for improvement may benefit more than those with already great credit history.

It is important to note that paying off a loan quite early with a large payment can actually hurt your credit score because at that point you are not technically paying as you agreed to in your loan documents.

The best credit histories will have three types of credit:

• A revolving line of credit (like a credit card)
• A shorter-term loan with steady payments (like a 3-5 year car loan)
• A longer-term loan (like a mortgage of 30 years)

You must make your payments ON TIME. Having all types of credit but not making your payments on time would be such a disservice to you and your future. Consider setting up loan payments on auto-draft to ensure timely payment.

5) Mabrey Bank prides itself on the relationships our bankers build with customers, often through generations. How does that mission and culture manifest itself when it comes to consumer loans? 

I think the fact that many of those applying for consumer loans are family members or friends of other customers speaks for itself. Around 80% of loan applicants are already customers or are referred from a current customer. We take care of our customers’ needs in many different ways and do our best to make things as easy as possible. They appreciate it so much that they are willing to refer those that are closest to them. Mabrey’s reputation of quality customer service and friendliness has spread through word of mouth, leading to more loans.

At the end of the day, we want our customers to be educated and well-informed about the application process and loan types and terms while setting and managing their expectations. I would say that 9 out of every 10 conversations I have with customers are educating them and running the numbers through various loan scenarios, so they are as comfortable as possible. More knowledge about a loan allows a customer to better help themselves and their families.

As Tax Day approaches on April 18, we asked our tax pros at Eide Bailly for some helpful items to keep in mind when filing your taxes this year. So, each Tuesday for the next five weeks will be “Tax Tuesday” where we will ask a different question to our tax pro.

The Tuesday schedule is below, so be sure to check back each Tuesday for a new question and answer.

QUESTION #1 (Tuesday, February 21):  Who can be claimed as a dependent on a tax return?

Eide Bailly Tax Pro: This can be a very complex answer at times, but in terms of whether or not one of your children can be claimed as a dependent for the year, the answer could be your son, daughter, stepchild, eligible foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, adopted child or an offspring of any of them.

The child must be under age 19 or, if a full-time student, under age 24. There’s no age limit if the child is permanently and totally disabled. The child must live with you for more than half the year, but several exceptions apply.

Also, the child may have a job, but they cannot provide more than half of their own support.  There are many other tests for individuals that are not within the above parameters that could still possibly qualify as a dependent on your tax return.

QUESTION #2 (Tuesday, February 28): Is there a Child Tax Credit on my 2022 Tax Return?

Eide Bailly Tax Pro: Yes. This credit is again available on an individual’s 2022 income tax return, with a maximum of up to $2,000 per child. If the child is under the age of 17 at the end of 2022 and is a dependent on your tax return and does not file a joint return with another person, that child could be eligible for the credit.

Further, the child you’re claiming must be your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister or a descendant of any of those people (e.g., a grandchild, niece or nephew). There are other requirements to be met, including income limits ($400,000 for joint filers, $200,000 for others), that need to be taken into account.

QUESTION #3 (Tuesday, March 7): Do I qualify for any tax benefits for paying my child’s college tuition?

Eide Bailly Tax Pro: If you have a child in college or graduate school, you may not qualify for one of these credits if your income is too high (phaseout range of $80,000–$90,000 for single filers; $160,000–$180,000 for joint filers), but the child might qualify:

American Opportunity credit. This tax break covers 100% of the first $2,000 of tuition and related expenses and 25% of the next $2,000 of expenses. The maximum credit, per student, is $2,500 per year for the first four years of postsecondary education.

Lifetime Learning credit. This tax break — up to $2,000 per tax return — is available for postsecondary education expenses beyond the first four years.

Education tax credits are taken predominately by parents, but students who pay their own college expenses, file their own tax returns and are not claimed as dependents on anyone else’s return could also be eligible to claim the credit.

QUESTION #4 (Tuesday, March 14): Are charitable donations still deductible on my tax return?

With the increased standard deduction in effect for 2022 ($25,900 for joint filers, $12,950 for single filers), many taxpayers no longer have a total sum of itemized deductions that exceed this amount. Charitable donations are itemized deductions, so depending on a taxpayer’s circumstance, they may take the higher standard deduction rather than itemizing deductions (which include a maximum deduction of $10,000 of state & local taxes, mortgage interest, charitable donations, a limited amount of medical expenses, and other expenses).

If you take the standard deduction, you technically are not realizing a tax benefit for charitable donations. There was a provision in prior tax years that allowed a charitable donation of up to $600, above the line of itemized deductions, but that provision has expired.

QUESTION #5 (Tuesday, March 21):  Can I deduct my medical expenses?

Similar to charitable donations discussed above, medical expenses are itemized deductions, so the deductibility hinges on whether you take the standard deduction or itemize deductions, whichever amount provides the highest deduction. When determining which ones could qualify as an itemized deduction component, only qualified medical expenses that exceed 7.5% of your adjusting gross income can be included in itemized deductions.

The IRS allows you to deduct unreimbursed payments for preventative care (physical exams), treatment, surgeries, dental and vision care, visits to psychologists and psychiatrists, prescription medications, items such as glasses, contacts, false teeth and hearing aids, and expenses that you pay to travel for qualified medical care. If you pay for your medical expenses using money from a flexible spending account or health savings account, those expenses aren’t deductible because the money in those accounts is already tax-advantaged.

January is Financial Wellness Month, and it’s a great time to set some goals for 2023 to get more financially healthy. We caught up with Debbie Bickle, one of our fantastic Private Bank Officers, to learn how to avoid financial illness and steps that can be taken to correct it.

As a CPA with an extensive background in budgeting, forecasting and financial reporting in the energy sector, Debbie made the move to the other side of banking in 2019 by joining the Mabrey Private Bank group. She now advises and serves Mabrey customers daily to provide them with the tools and resources needed to achieve their goals.

1) Thanks, Debbie for taking the time to chat about financial wellness. Many probably think of financial wellness as having a lot of money, but true health goes deeper than a dollar amount in a bank account. How do you define financial wellness?

My definition of financial wellness is less about how much you make and more about how you manage your day-to-day cash flow and how much you have in your emergency, rainy day and retirement funds. In order to truly be financially healthy, you need to be able to pay your bills and living expenses on time and have ample money set aside for both the unexpected and the future. There are many theories of the best way to manage your money, but in a nutshell, earn a wage or salary, save a portion of your earnings, and invest a portion of your earnings.

2) What reasons do you see that lead to a person or business not being financially well?

In most cases, the reasons a person or business become financially unstable are similar. They fail to make and, more importantly, follow a budget and to have a source of liquidity (or savings) to use if something unexpected happens.

A good budget takes into account the potential ups and downs of income and expenses and builds in some “cushion.”  I recommend looking at revenue streams and costs of living or operating expenses for potential changes that can negatively impact your net cash flow and then budget conservatively. Without a budget, and the disciple to work within that budget, cash flow can get tight. Once you get behind on bills, the costs escalate with interest, penalties, etc. – another reason having adequate money in savings is so important.

3) What is a simple first step or two that any person or business, no matter their income/revenue, can take towards becoming more financially healthy?

A first easy step for an individual or business to get financially healthy is to prepare a budget. Identify sources of income; then look at all potential expenses – consider which are necessary and which can be eliminated if cash flow is tight.

Another suggestion is to have a portion of your net pay go directly to a savings account. If your employer offers a 401(k), take advantage of it. The amount you put directly into a 401(k) plan is taken out pre-tax which reduces the amount of taxes taken from your check. Also, in many cases, your employers will match a portion of your 401k contribution – in essence giving you free retirement money. People tend to spend what they have, so if you allocate to savings first, you will learn to live with what’s left.

4) The Holidays and New Year are often a time when people receive bonuses and/or pay raises. How can those be utilized smartly to increase financial wellness?

For those that receive a bonus check, it would be smart to pay off or paydown any high interest debt.  However, if you don’t have an emergency fund, it might make sense to use a portion of your bonus to pay down debt and the rest of the bonus to build your savings.

If you do receive a pay raise, similar to my answer above, I recommend determining the amount of the increase to your net pay and use that “increase” to pay down any high interest debt. Once paid off, start putting that extra money directly in savings.

Once you have eliminated or settled high interest debt and have solid savings funds, consider investing your bonus or raise.

5) How can products or services from Mabrey Bank assist in obtaining financial wellness?

Mabrey offers many interest earning products including money market accounts (MMA’s), savings accounts, certificates of deposits (CD’s).

Utilizing online banking, you can setup automatic transfers to your savings account or BillPay to send money to an investment advisor. Additionally, Mabrey offers a new tool called Money Manager, that can be found through our online banking system. This tool can help you budget and analyze your spending to help get a better understanding of where your money is going.

Don’t hesitate to reach out to your local Mabrey Officer or Relationship Banker if you have any questions about how we can help you achieve your goals.