What are Hometown Bankshares's Business Segments?
Lending Services. The Bank also offers a full range of short-to-medium term commercial
and personal loans. Commercial loans include both secured and unsecured loans
for working capital (including inventory and receivables), business expansion
(including acquisition of real estate and improvements), and purchase of equipment
and machinery. Consumer loans and lines of credit include secured and unsecured
loans for financing automobiles, home improvements, education and personal investments.
Additionally, the Bank originates fixed and floating-rate mortgage loans and real
estate construction and acquisition loans.
Consumer Residential Mortgage Origination. The Bank has expanded their residential
mortgage origination operations over the last few years. Initially, the Bank originated
loans as a representative for mortgage companies. Then, in February, 2012, the
Bank opened a dedicated mortgage office, on Colonial Avenue, next to the existing
branch office. In 2013 HomeTown Bank entered into a joint venture agreement with
a mortgage company as 49% owner of HomeTown Residential Mortgage, LLC. The new
entity began operations at the end of 2013, absorbing the Bank’s mortgage
office employees and continued working from the Colonial Avenue office. The mortgage
office operates under the name HomeTown Mortgage and coordinates the Bank’s
existing mortgage services and offers mortgages, refinancing, and other services.
Loans originated are conforming home mortgages in its market area, as defined
below. As part of the Bank’s overall risk management strategy, loans originated
and closed by the mortgage office are pre-sold to major national mortgage banking
or financial institutions. In addition to creating customer relationships and
the opportunity to sell other products and services, the bank receives fee income
for this service.
Investment Services. HomeTown Investments, opened in April 2013, provides diverse
investment products and financial advisory services to existing and prospective
customers. These products and services provide another source of revenue for the
Company. Investment and insurance products and services are offered through an
unaffiliated entity LPL Financial, Member FINRA/SIPC. HomeTown Investments is
a subsidiary of the Bank. Products and services made available through LPL Financial
are not insured by the FDIC or any other agency of the United States and are not
deposits or obligations of nor guaranteed or insured by any bank or bank affiliate.
These products are subject to investment risk, including the possible loss of
value.
Private Wealth. At the end of 2015, the Bank began offering personalized, banking
solutions to work with customers to clarify financial goals and bring together
professionals to satisfy their investment, trust, credit and other financial needs.
Revenue from wealth management activities is comprised mostly of fees based upon
the market value of the accounts under administration as well as commissions on
investment transactions.
Other Services. Other services offered by the Bank include safe deposit boxes,
traveler’s checks, direct deposit of payroll and social security checks,
automatic drafts for various accounts, overdraft protection, check cards, credit
cards and merchant card services. The Bank also has become associated with a shared
network of automated teller machines (ATMs) that may be used by Bank customers
throughout the world. The Bank intends to introduce new products and services
as permitted by the regulatory authorities or desired by the public. The Bank
remains committed to meeting the challenges that require technology. The Bank
provides its customers with access to the latest technological products, such
as internet banking, including on-line bill pay and mobile banking. The services
allow customers to handle routine transactions using the internet at the Bank’s
website www.hometownbankva.com, or on their mobile phones.
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