Community Banking Special Report No. 5

EDITOR'S NOTE
Changing Models
Fierce competition in mutuals' primary lines of business — residential mortgages and certificates of deposit — is squeezing margins, and many mutual thrifts are simply too small to broaden their offerings.MANAGEMENT
Mergers, Conversions Reshaping Mutual Market
Industry observers say an uptick in the pace of mutual-to-stock conversions, along with a flurry of mutual-to-mutual mergers and other deals, reflect a growing sense of urgency about the status quo.

• Accounting Rule Seen Miscasting Mergers

SMALL BUSINESS
Market for Electronic Payments Getting Broader
Small companies are growing increasingly comfortable managing payroll, paying bills, and collecting accounts receivable electronically.PERSPECTIVE
Navigating the Market for Payments Technology
Some banks have improved traditional products and services, but, in doing so, they have ignored the opportunity to capitalize on payment strategies.

ON MAIN STREET
Flynn Ought to Be in Pictures
Steven P. Flynn's day job is a senior credit analyst at the $385 million-asset Maine Bank and Trust in Portland. But on weekends and on vacations he often rubs shoulders with the likes of Joanne Woodward, Ed Harris, Martin Sheen, and Kevin Spacey as a character actor in movies.

ON MAIN STREET
A Night for Loan Preapprovals
Looking to raise its profile in its western Massachusetts markets — and drum up new business — Legacy Banks in Pittsfield is inviting prospective homebuyers into its offices for meet-and-greet sessions with lenders.

ON MAIN STREET
Board of Education
Nextier Bank in Butler, Pa., established a rotating "Junior Bank Board," made up of 12 high school juniors and seniors from schools in its market, to teach students about banking and the role that banks play in the community.

DATA ROUNDUP
Stock Watch
Community bank stock indexes vs. S&P 500, April 10 - May 22, and five biggest gainers and declinersCD Watch
Retail deposit rates as of May 22 for 1,872 banking companies with assets under $3BBrokerage Activity
A composite view of securities brokerage activity in banks and credit unions with $2B or less of consumer depositsConsumer Rates
Some of the most popular products