Michael Monnier, Tony Kaiser and Sandy Hoehne of Osgood State Bank, Osgood, Ohio.

Osgood State Bank

Osgood State Bank serves a mix of agricultural and manufacturing communities in rural western Ohio, and has become competitive in offering mortgages since joining FHLB Cincinnati’s Mortgage Purchase Program.

“We weren’t able to offer fixed rate mortgages because of the interest rate risk.” said Michael Monnier, president and CEO of OSB Bancorp, the holding company. As a small community bank, “We didn’t have a relationship with Freddie or Fannie or any of those. We wanted to keep the servicing rights so we still had the contact with the customer.”

Today, Osgood State Bank has $175 million in assets, and services customers across Darke, Mercer, Shelby and Logan counties. CFO Sandy Hoehne describes the bank’s franchise as “helping small businesses and families finance college education, homes – whatever their dreams are.”

An early user of MPP, the bank has sold more than $90 million in mortgages to the FHLB. “Overall we’ve just been very pleased with the Mortgage Purchase Program,” Ms. Hoehne said. “We’re able to offer lower rates than what we could offer on our own.”

Osgood State Bank’s leadership meets annually with FHLB Cincinnati staff to keep current on products and services. “When we know your programs as well as we do, we can talk to customers and identify whether their request for a mortgage is going to be approved,” said Tony Kaiser, president and CEO of Osgood State Bank. “That means we get better and quicker turnaround to our customers.”