MeritMatters - Mid-Michigan Version 4, Issue 2

Insights for business & life
A new way
Genesys Hurley
Cancer Institute
grew from a vision
of holistic
cancer care
+
BUSINESS
Champagne and Marx invests
in people and technology
COMMUNITY
Blueberry Ambassadors
inspires good deeds
ASK THE EXPERT
How to choose a trustee
volume 4, issue 2 // www.firstmerit.com
Bob Giffel,
Executive Director,
Genesys Hurley
Cancer Institute
first word
Looking ahead
Springtime in the Midwest is a time of
renewal and looking ahead to expected
growth.
From a financial viewpoint, one critical
part of looking ahead is selecting the right
trustee as part of your estate planning
process. Whether choosing an individual
or corporate trustee, there are a number
of important considerations and options
to strategically guide your selection based
From a financial
viewpoint, one critical
part of looking ahead
is selecting the right
trustee as part of
your estate planning
process.
on your specific needs. In this issue of
MeritMatters, Aaron Reber, FirstMerit’s
head of trust, provides a helpful guide to
seeking the ideal candidate.
Getting a college education remains a
Tom Deininger, FirstMerit’s vice president/
manager, foreign exchange trading,
huge factor in millions of Americans’ plans
provides some insight and explains how
for their career futures. The student loan
FirstMerit’s foreign exchange services can
debt balance in the United States now
help you manage the risks associated with
exceeds $1.3 trillion with more than 40
currency fluctuations.
million Americans carrying that debt. What
This edition also profiles a number of
effect will this, the second-largest category
your neighbor organizations and how they’ve
of household debt, have on economic
met the challenges facing their industries.
growth? Dan Crawford, Chief Investment
I hope you’ll find these articles informative
Officer of FirstMerit PrivateBank,
as you look ahead to your business’ success
examines and analyzes the student debt
throughout the year and beyond.
phenomenon on a macro level.
Looking ahead on a global scale,
As we look ahead at FirstMerit, we are
actively preparing and planning for our
currency market volatility has many
merger integration with Huntington. We
corporate treasurers and controllers
are pleased with the progress and expect to
wondering how foreign exchange market
close on schedule during the third quarter of
gyrations will impact business in 2016.
this year.
2 • MeritMatters®
As always, thanks for
reading MeritMatters.
Paul Greig
Chairman, President and
Chief Executive Officer
FirstMerit Corp.
table of contents
volume 4, issue 2
14
Briefs ........................................................................................... 5
Events, highlights and attractions
Business Matters ................................................................. 6
Champagne and Marx succeeds by investing
in people, technology and customer service
Ask the Expert ......................................................................10
What to consider when selecting a trustee
Ask the Expert .......................................................................12
Addressing volatility in the currency market
6
Cover ......................................................................................... 14
Genesys Hurley Cancer Institute was borne out
of a vision for holistic cancer care
Investments .......................................................................... 20
Rising student loan debt and the impact
on economic growth
Community ............................................................................. 22
Blueberry Ambassadors inspires
one good deed after another
12
About our new look
You may have noticed that this issue debuts a new look for
MeritMatters. Our streamlined layout and new editorial approach are
designed to enhance your reading experience. What hasn’t changed is
that every page still offers valuable information for business and life.
We look forward to bringing you more of what you love about
MeritMatters.
MeritMatters® • 3
in this issue
David Lochner
Todd Gregory
Greg Viener
volume 4 issue 2
Publisher
Michael Marzec
Editorial adviser, FirstMerit
Shannon Cote
Managing Editor
Laura Marzec
Contributing Editors
Erik cassano, sue ostrowski,
David searls
A track record of success
Welcome to the newest issue of MeritMatters magazine. There is a lot going on with
businesses in Mid-Michigan, and we’ve talked to some local leaders about the successes
they are having.
In this issue, we speak with Bob Giffel, executive director of Genesys Hurley Cancer
Institute. The organization — formed in 2002 when Genesys Regional Medical Center and
Hurley Medical Center teamed up — offers a comprehensive approach to treatment, with
team members across several specializations working together to drive positive results.
We also speak with Anne Coursey, president of Champagne and Marx, which specializes
in a variety of site development services. As Coursey says, “If you walk, drive or build on it,
we really strive to be a one-stop shop for it.”
And we talk with Phil Shaltz, who with his wife, Ardele, was inspired to found Blueberry
Ambassadors after a chance encounter in Alaska. Blueberry Ambassadors makes Genesee
County a better place by encouraging students to perform good deeds, then hand off a
card that explains the program and encourages additional kind acts.
This edition also presents advice from FirstMerit Bank experts about choosing the
right trustee to be responsible for protecting your legacy and how to manage the risks
associated with fluctuations in the foreign currency market. Finally, we look at the impact of
rising student loan debt and delinquencies on economic growth.
We hope you enjoy this issue of MeritMatters and take away something that will help
you grow and thrive in your own business.
David Lochner
President
Michigan
FirstMerit Bank
4 • MeritMatters®
Todd Gregory
Community President
Saginaw, MI
FirstMerit Bank
Greg Viener
Community President
Flint, MI
FirstMerit Bank
Art Director
Stacy Vickroy
Project Manager
KAte Castrovince
Cover photo
Tom McKenzie
If you would like to receive future issues
of MeritMatters®, email us at
[email protected].
MeritMatters® is published by
Convero (Formerly SBN Interactive)
835 Sharon Drive, Suite 200
Westlake, OH 44145
(844) 428-8844 / www.converoinc.com
MeritMatters® is solely intended for general
information purposes. It is not intended to provide – nor should it be used in lieu of – financial,
accounting, legal or other professional advice. It
does not constitute a recommendation to buy or
sell any security or adopt any investment strategy. The publisher assumes no liability for readers’
use of the information contained herein. The
information was obtained from sources believed
to be reliable, but such information is not guaranteed as to its accuracy. Readers should seek
professional assistance with regard to specific
matters. All opinions expressed in MeritMatters®
are those of the authors or sources and do not
necessarily reflect the views of FirstMerit Bank
or FirstMerit Corp.
Securities and Insurance products are:
Not FDIC insured. May lose value. No bank guarantee. Not a deposit. Not insured by any federal
or state government agency.
briefs
events
Legends of the
Saginaw Sail
May 28-29, 11 a.m. to 2 p.m.
$37 adults, $27 kids younger than 18
Wenonah Park, N. Water Street, Bay City
(989) 895-5193
www.brownpapertickets.com/event/2497971
Commodity-free
business banking
Capital is a commodity, but that doesn’t mean that your banking relationship should
be similarly commoditized. Every business has its own definition of success and unique
strategies and goals for getting there. That’s why the lender relationship needs to grow
alongside the business.
Trends in digital technology make it increasingly easy for your banker to take a more
data-driven approach to identifying your company’s needs and opportunities, then offering
business banking products and services that add real value. But technology can’t — and
shouldn’t — work alone.
While FirstMerit Bank uses data-driven technology to the advantage of our clients,
we start with a more hands-on, personal approach. Our business banking relationship
managers study your business, your industry and your goals before identifying workable
financial solutions. From there, we’re able to offer a customizable portfolio of tools for
treasury management, business payroll and merchant services.
We invite you to partner with your FirstMerit Bank relationship manager, a trusted
advisor who can help you get the most out of your banking relationship.
Please contact your FirstMerit Bank business relationship banker for more information on our
advisory services.
Learn the fascinating history of the
Saginaw River as the Appledore sails from
Downtown Bay City to the Saginaw Bay.
Once on the open water, help the crew set
the sails, or relax and enjoy the view.
Clay Through
Time:
Ancient to
Contemporary
Ceramics
April 23-Oct. 30, noon to
5 p.m. Monday to Friday,
10 a.m. to 5 p.m. Saturday
and 1 p.m. to 5 p.m. Sunday
$7 adults, $5 students and
seniors; Enjoy FirstMerit Bank Free
Saturdays. Flint Institute of Arts,
1120 E. Kearsley St., Flint
(810) 234-1695
www.flintarts.org/exhibitions/
upcoming/claythroughtime.html
Clay Through Time features about 50
objects and explores the many styles and
functions of ceramic art.
Summer concerts
FirstMerit Bank is a proud
sponsor of venues hosting
a range of musical entertainment this summer.
Take a look at just a few of
the national headliners at
each location.
Blossom Music Center, Cuyahoga
Falls, Ohio (featuring the FirstMerit
Bank VIP Club) – Acts include The
Dave Matthews Band (May 21),
Florence + the Machine (June 4),
Journey and the Doobie Brothers
(June 29) and Keith Urban (July 15).
FirstMerit Bank Event Park,
Saginaw, Michigan – Showcase
acts include Rob Zombie (May 19),
the legendary Chicago (Aug. 17) and
Bryan Adams (Sept. 14).
FirstMerit Bank Pavilion at
Northerly Island in Chicago –
Check out Bad Company and Joe
Walsh (June 23), Modest Mouse
(July 2), Heart, Joan Jett and the
Blackhearts and Cheap Trick (July
19) and Josh Groban and Sarah
McLachlan (Aug. 9).
MeritMatters® • 5
business matters
Moving earth
At Champagne and Marx, success means investing in people, technology
and customer service By erik cassano
High performance
At its heart, Champagne and Marx is a service business.
Scores of other companies provide the same services it
does, so the company’s differentiator has to be its people.
“Our competitors can buy the same equipment, materials
and parts we can, at the same prices we can,” Coursey says.
“Our only edge is our people and their capacity for delivering
outstanding performance. Everyone who works here knows
we need to maintain a high standard of quality, complete
projects on schedule and pay attention to the details. That’s
what wins customers and leads to repeat business.”
“If you walk, drive or build on it,
we really strive to be a one-stop
shop for it.”
– Anne Coursey,
President, champagne and Marx
Motivated employees are high-performing employees.
So the Marx family supports its employees in a number
of ways, including ongoing training in the use of new
equipment, customer service and safety practices.
“Part of the benefits package negotiated into the union
contracts includes training,” Coursey says. “We encourage
our employees to go to the union halls, which have great
facilities for training on safety and proper use of new
machinery. We’ve also had some of our foremen go through a
pretty comprehensive managing for productivity program.”
The Marx family’s commitment to supporting and
training employees has made Champagne and Marx a
sought-after place to work. As with the Marx family itself,
many nonmanagement employees are second- and thirdgeneration workers.
“People make their careers here, and we’re very proud
of that,” Coursey says. “We look at ourselves as a family
business that employs families, and that kind of stability
means a lot to us.”
Expanding the customer base
The company’s internal stability has been a major factor
in its ability to expand its services, and in turn, expand its
customer base. Over the years, the Marx family has learned
what the leaders of many growing businesses have learned:
The more business channels you have, the more insulated
you are from recessions and market fluctuations.
continued on page 8
6 • MeritMatters®
photos by Tom McKenzie
In 1973, Frank Champagne owned a bulldozer and Tom Marx
owned a road grader. Both had a history in the excavating
business, and both had the desire to start their own business.
With a few essential pieces of equipment in tow, the pair
began accepting jobs for earth excavation — forming what
would soon become Champagne and Marx Excavating.
“In our line of work, the customers’ demands are very to
the point — they want high-quality work, performed safely,
on schedule and competitively priced,” says Anne Coursey,
the company’s president and Marx’s daughter. “Frank and my
dad did that every time, and the business grew to the point
that they were able to incorporate in 1978.”
After Champagne retired in 1986, the Marx family
assumed control of the business and continued to grow
its array of excavation, demolition and site development
services. The company is now run by Coursey with siblings
David Marx and Christine Davis. Their children have also
begun working for the company, making Champagne and
Marx a third-generation family business.
“We’ve simply tried to build on what my father and
Frank started,” Coursey says. “We’ve been creative about
finding new ways to utilize our expertise. We’re now
involved in many different aspects of site development.
We install parking lots and roads, we install utilities
infrastructure, we deliver stone and screened topsoil. If you
walk, drive or build on it, we really strive to be a one-stop
shop for it.”
Christine Davis, Anne
Coursey and David Marx,
Champagne and Marx
MeritMatters® • 7
business matters
Digging beneath
the surface
continued from page 6
“Diversity in our customer base has been key for us in
that regard,” Coursey says. “We’ve survived and thrived by
not putting all of our eggs in one basket. By branching into
different areas of business, we’re able to exert more control
over what projects we take.”
Because Champagne and Marx’s business is based on
competitive bids, it often can’t control what business it
gets. However, by having different channels for business,
such as grading, demolition, site development and utilities,
it can control how aggressively it bids on a given project.
The company bids selectively, which allows it to employ its
expertise in the most efficient and effective manner.
“We’re not just grasping at whatever business we can get
our hands on,” Coursey says. “If we think something fits,
we go after it. That allows us to invest our resources in the
way that makes the most sense, and it allows us to put our
people to work doing what they do best. It’s a recipe that’s
worked for us for going on 40 years.”
For more information on Champagne and Marx
Excavating, visit www.champagnemarx.com.
8 • MeritMatters®
Champagne and Marx Excavating has a longstanding
relationship with FirstMerit Bank. The relationship has
become so deep that Champagne and Marx relies on
FirstMerit for nearly all of its banking services.
“We work with them on our profit-sharing plans,
equipment loans, a line of credit — and that’s on
top of our basic banking needs,” says Anne Coursey,
the company’s president. “FirstMerit is the financial
engine behind why we can move quickly to offer
competitive bids on multimillion-dollar projects.”
Coursey says Champagne and Marx has stayed
loyal to FirstMerit because the bank’s regional leaders are willing to take the time to understand the
financial challenges that are unique to her company
and to the excavating industry.
“They’ll make site visits,” she says. “They’ll dig
down and get to that deep level of understanding
about how they can help us. They know that if they
work with us, we’re a stable company and we’re going
to pay them back. We have a great relationship with
them, based on history. It takes a long time to develop
that level of trust, and we highly value that in a bank.”
Build a foundation
FirstMerit can provide your business with the
support to build a strong, stable foundation
for future growth. For more information,
contact your relationship manager, or
visit www.firstmerit.com/commercial or
www.firstmerit.com/privatebank.
Solutions That Grow
With Your Business
Get the products, support, and advice your company needs to thrive.
Increased demand for eco-friendly solvents meant exponential growth for Lisa—and a conversation with
FirstMerit Bank. Thanks to advice and services from Treasury Management, Payroll, International Services,
and more, Lisa was able to create a new model for order fulfillment that allows her to keep up with
increasing demand. Now, Lisa’s business no longer qualifies as “small.”
TO L E A R N MOR E, C O N T A C T :
Greg Viener, Community President, Flint,
at 810-342-7074 or [email protected].
Todd Gregory, Community President, Saginaw,
at 989-776-7465 or [email protected].
Dave Green, Community President, Bay City,
at 989-894-6715 or [email protected].
Follow the latest market trends
@firstmerit_mkt
Lisa reflects a composite of clients with whom we’ve worked; she does not represent any one person.
firstmerit.com
Member FDIC
5350_FM16
ask the expert
Choosing a trustee
Weigh all your options when protecting your legacy
Naming a trustee to be responsible for protecting your
legacy demands thoughtful consideration and an openminded examination of available options. As part of
your wealth transfer strategy, should you choose an
individual trustee or corporate trustee? What questions
should you ask when seeking the ideal candidate?
Where do you begin?
Before you start, recognize that your situation is unique.
What proved a successful strategy for your neighbor may
not be a suitable approach based on your needs. Selecting
a trustee is an important decision that could significantly
impact your family and estate plan, so do your research to
make an informed choice.
Take the time to grasp what you will be asking your
trustee to do. Specific responsibilities include taking
10 • MeritMatters®
By Aaron Reber
custody of and safeguarding assets, making appropriate
investment decisions, understanding and reacting
to changes in applicable laws, making discretionary
distribution decisions, communicating with beneficiaries,
preparing trust accountings and handling tax matters.
The complexity of your plan and assets also factors
into what you will ask your trustee to do. Absolute
discretion to make distributions as your trustee sees fit is
a lot of responsibility and can create challenges, especially
when there are multiple beneficiaries. Complex assets,
such as closely held business interests or real estate,
may require a trustee with specialized business and
financial skills.
When considering an individual, such as a family
member or trusted adviser, to serve as trustee, ask
Absolute discretion to
make distributions as your
trustee sees fit is a lot of
responsibility and can
create challenges, especially
when there are multiple
beneficiaries.
yourself essential questions. Does he or she have the
time, expertise, experience and desire to take on this
responsibility? Will changes in the trustee’s life, such as
retirement or a move to another location, affect his or her
ability to continue serving in this capacity? Will he or she
be comfortable putting personal assets at risk for decisions
made regarding the trust?
If you have reservations about naming an individual
as trustee, you may want to explore naming a corporate
trustee. Corporate trustees have extensive experience
handling ordinary and complex fiduciary tasks. Knowing
that many years of experience have been drawn on to
develop consistent approaches to decision-making may
provide you a certain level of comfort. Families can
also benefit from having the same corporate trustee
provide uninterrupted service for successive generations,
eliminating mortality issues that come with opting for an
individual trustee.
Keep in mind that selecting a corporate trustee does not
exclude your family from being involved.
• You can appoint a family member as co-trustee to serve
with a corporate trustee.
• You can give your beneficiaries the power to remove and
replace the corporate trustee.
• You can name a family member as a trust adviser for the
trust, to be consulted on
investment decisions,
distributions to
beneficiaries, or both.
our expert
Whatever path is
ultimately taken, many
people find that consulting
an experienced trust
adviser puts the selection
process on solid footing.
FirstMerit PrivateBank has
Aaron Reber
been serving as trustee of
Head of Trust,
traditional and complex
Senior Vice
trusts for more than a
President,
FirstMerit
century. Our local trust
PrivateBank
advisers understand the
responsibilities of a trustee
and have the experience
and expertise to make prudent decisions to carry
out your wishes. We invite you to visit with a
FirstMerit PrivateBank trust adviser to learn how
we can provide you with an objective perspective
on your circumstances and help you select a
trustee who will achieve the objectives of your
legacy plan.
Make the right choice
For more information
and help with choosing
the right trustee for
your needs, visit
www.firstmerit.com or
contact Aaron Reber at
[email protected].
MeritMatters® • 11
ask the expert
Addressing volatility
in the currency market
our expert
Tom Deininger
Vice President /
Manager, Foreign
Exchange Trading,
FirstMerit Bank
12 • MeritMatters®
Currency market volatility
has spiked over the past
18 months, leaving many
corporate treasurers and
controllers wondering
which direction the U.S.
dollar would take next and
how currency or foreign
exchange (FX) market
gyrations would impact their
business models for 2016.
The USD Index 1
appreciated more than 25
percent from July 2014
to January of this year, as
the FX market was largely
focused on the divergence
between Federal Reserve
(Fed) monetary policy and the policy measures of its major
trading partners. While the Fed was moving gradually
to remove monetary accommodation2 and begin raising
short-term rates, its G7 counterparts were moving in the
opposite direction, adding stimulus and taking base rates
into negative territory.
This “race to the bottom” among central banks has
manifested itself in a series of unprecedented actions,
frequently catching markets off guard and leading to
heightened market volatility. In January 2015, the Swiss
National Bank wreaked havoc on the FX world by removing
the long-standing peg (or fixed-exchange rate) between the
euro (EUR) and the Swiss franc (CHF). In response, the
EUR/CHF rate appreciated in value more than 20 percent
in just one day. As part of these extraordinary measures, the
Swiss National Bank lowered its benchmark interest rate to
-0.75 percent.
The European Central Bank has also embarked on an
expansionary monetary policy, introducing quantitative
easing 3 last year and dropping deposit rates below zero for
the first time in its short history. Not to be outdone, the
Bank of Japan adopted a negative interest policy4 earlier this
year for excess reserve balances held by commercial banks
in an attempt to energize a moribund Japanese economy.
Additional shocks to the FX market from central bank
actions in recent months include the devaluation of the
yuan5 by the People’s Bank of China last summer and the
direct market intervention by the Mexican central bank in
the USD/MXN spot market in February.
The end result of all of these undertakings by the various
monetary authorities has been a broadly stronger U.S. dollar
but also a markedly higher level of volatility as the market
reacts, sometimes violently, to unanticipated changes in the
policies that govern the global financial system.
The widespread introduction of ultra-low interest rate
policies has led to much discussion about competitive
Russia
Egypt
India
11%
10.75%
China
U.S.
6.5%
4.35%
0.5%
mexico
3.75%
While interest
rates remain low
in the U.s. and
other parts of the
world, central
banks in egypt
and russia are
charging much
higher rates.
as of April 1, 2016
currency devaluations and their potential impact on
the global landscape. As many nations have struggled
to invigorate their economies, enhancing export
competitiveness through currency depreciation can be
viewed as a viable means to increase production. This is
simply another version of the race to the bottom.
Importers, exporters and companies with foreign
subsidiaries or parents are all affected by the changes in
exchange rates over time. The good news for corporate clients
of FirstMerit Bank is that the bank offers the means to help
manage the risks associated with currency fluctuations.
Most of the transactions that the FirstMerit FX desk
processes for its clients are spot contracts or current rate
trades that settle in one or two business days. But the bank
also works with companies that can assist in identifying FX
risk and seek to actively manage it. The forward contract
is an over-the-counter derivative that is a very effective
method of helping manage either payables or receivables
denominated in foreign currencies. This contract between
client and bank fixes an exchange rate for a predetermined
currency amount for some future date, generally less than
one year forward. For instance, it allows an exporter selling
to a customer in France to lock down an exchange rate for
a series of payments denominated in euros, securing a fixed
U.S. dollar value and, in turn, locking in a profit margin.
The FirstMerit FX desk works on a consultative basis
with its customers to determine the strategies that are best
suited to their risk appetite. We can help formulate and
execute an FX risk policy that will help remove some of that
market volatility to help manage your bottom line.
Understanding the FX market
To learn more about how FirstMerit
Bank’s FX desk can help you achieve
your goals, contact your FirstMerit
relationship manager or FirstMerit
PrivateBank adviser or visit
www.firstmerit.com/commercial or
www.firstmerit.com/privatebank.
1. The US Dollar (USD) Index is a measure of the value of the U.S. dollar 2. Monetary
accommodation is when a central bank stimulates economic growth by lowering shortterm interest rates, making money less expensive to borrow. 3. Quantitative easing is a
monetary policy in which a central bank purchases government or other securities to
lower interest rates and increase the money supply. 4. A negative interest rate means the
central bank charges negative interest, requiring depositors to pay to keep their money
with the bank. The intent is to incentivize banks to lend and businesses and individuals to
invest and spend, rather than pay a fee to keep money safe. 5. Devaluation means official
lowering of a country’s currency within a fixed or semi-fixed exchange rate system.
MeritMatters® • 13
cover story
prime
partnership
14 • MeritMatters®
By Erik Cassano
When facing a cancer diagnosis, the main
weapons doctors rely on are surgery,
chemotherapy and radiation. While this
has been the case for decades, the manner
in which they are delivered and the overall
approach to caring for the patient have
changed dramatically in recent years
thanks to Genesys Hurley Cancer Institute
and other organizations like it.
Genesys Regional Medical Center and
Hurley Medical Center teamed up to form
the Genesys Hurley Cancer Institute to
improve the patient experience. Now,
cancer patients are able to seek treatment at
Genesys Hurley Cancer Institute — one of
the first facilities in Mid-Michigan designed
to treat every part of a cancer patient, not
just the part affected by the disease.
photos by tom Mckenzie
Genesys Hurley Cancer
Institute was borne out
of a vision for holistic
cancer care
Bob Giffel,
Executive Director,
Genesys Hurley
Cancer Institute
MeritMatters® • 15
“We opened in 2002 as a 50-50 joint
venture between Genesys and Hurley,”
says Bob Giffel, the institute’s executive
director. “We offer the clinical and medical
services necessary to treat cancer, but with
a very robust support and services wing
that focuses on education, nutrition and
quality of life.”
That extends to the patient’s family,
as well.
“Family members are often the primary
caregivers, so they play a vital role in a
successful treatment outcome,” Giffel
says. “We offer a great deal of support
and education to caregivers and family
members. The better they are, the better
the patient will be.”
Because Genesys Hurley’s approach
is comprehensive, team members from
across several specializations work
together to drive positive treatment
results. That culture of teamwork makes
the institute one of the most sought-out
cancer treatment programs in the region.
A focus on the patient
The essential difference between traditional
cancer treatment and programs like those
at Genesys Hurley is that patients are
participants in their treatment, as opposed
to being the object of it.
Treatment programs are built around
an ongoing dialogue among doctors,
patients, support staff and family
members. Rounds of dialogue and feedback
help physicians and caregivers determine
how to improve the course of treatment
in order to deliver better clinical results
in treating the disease and enhance each
patient’s quality of life.
16 • MeritMatters®
“Cancer is a disease that can make you
feel very isolated, like it’s your battle to
fight alone. But that’s not true.”
– Bob Giffel, Executive Director, Genesys Hurley Cancer Institute
It’s the difference between saving
patients’ lives and saving their ability to
live.
“Everyone on our team is patientfocused,” Giffel says. “That might sound
like a nebulous term, but we can’t have
someone working here unless they’re
completely focused on how to deliver care
to our patients. You can be educated in
how to deliver care to a cancer patient,
but how are you going to work with him
and his family to deliver the best possible
results for the person — not just medically,
but for his overall emotional, mental and
physical health?”
Every physician, nurse and support
staffer who comes in contact with a
patient continues the dialogue with that
patient, giving Genesys Hurley a view of
his or her case through multiple prisms.
When medical and support staff members
compare notes, it gives the institute a total
view of what is working and not working
for that patient.
“Everybody is coached to continue the
conversation,” Giffel says. “Ask a lot of
questions and do a lot of listening. Learn
how a patient’s needs are changing, what
hurdles they are facing, how things are
evolving for them. When you have cancer,
it’s never a static situation, medically or
otherwise, and the only way we’re going to
know if we’re succeeding in delivering the
type of care we strive to deliver is to talk
to our patients and their caregivers on an
ongoing basis.”
When patients interact with every
person who oversees an aspect of their
care, it promotes the idea that the
patient has an entire support network of
professionals fighting his battle with him
— an empowering thought.
“That, we believe, is as important to a
successful outcome as anything,” Giffel
says. “Cancer is a disease that can make
you feel very isolated, like it’s your battle
to fight alone. But that’s not true, and that
is one of the most important things we
try to communicate to our patients, both
through words and actions. The patient is
not alone. We have great people, medicine,
technology and support programs, and
we’re going to work with you. We’re going
to fight for you.”
Staying on the cutting edge
Ongoing dialogue among doctors,
patients, caregivers and staff is essential
to determine the best course of treatment
and therapy for each patient. However,
modern cancer care isn’t possible without
large investments in equipment and
services, as well.
Technology is constantly evolving, and
keeping up with it poses one of the most
daunting challenges for Genesys Hurley.
“The cost of technology is high,”
Giffel says. “Costs never rise in line with
reimbursements, so like many facilities in
the medical space, we often find ourselves
having to do more with less.”
Genesys Hurley installed a new linear
particle accelerator in 2007 and another
in 2013. The devices, which administer
radiation therapy treatments, can cost
between $3 million and $4 million apiece.
“We have to add new, state-of-the-art
equipment as it becomes available if we’re
going to stay on the cutting edge and have
the ability to deliver the best possible
treatment to our patients,” Giffel says.
“That investment is one that’s significant
and ongoing. We’re always in the position
of planning for our next big technologyrelated expense.”
In addition to technology, the need for
new and better support services is ever
growing. Often, the support services that
patients need are the kind that can’t be
delivered on-site at the institute. Patients
need help coordinating their lives, which
have been turned upside down since
their cancer diagnosis. Some can’t drive
anymore, and many can’t work. Those
MeritMatters® • 17
“We have to add
new, state-of-theart equipment as it
becomes available if
we’re going to stay
on the cutting edge
and have the ability
to deliver the best
possible treatment to
our patients.”
– Bob Giffel, Executive Director,
Genesys Hurley Cancer Institute
problems are further magnified if a patient
was living in a low-income situation to
begin with.
“Support services represent another leg
of the treatment stool,” Giffel says. “Along
with staff and technology, we need to
invest in services that assist our patients
18 • MeritMatters®
with maintaining a decent quality of life
throughout the course of their treatment
program.”
Some patients do not have reliable
transportation, so Genesys Hurley
partners with the American Cancer Society
to provide transportation to and from the
institute. Frequently, a patient’s biggest
challenge doesn’t even involve his or her
cancer treatment.
“Some patients might be struggling to
pay the bills,” Giffel says. “We maintain
support funds to assist our patients if
they’re about to have their utilities shut
0ff. If a patient is able to drive, but maybe
can’t afford gas for his or her car, we’ll
maintain a supply of gas cards that can
help with that. It all goes back to the idea
that we’re not just administering clinical
treatment. We’re helping to weave that
safety net of support during a very trying
time in a person’s life.”
Support network
Genesys Hurley also leans on its own
network of support. Since the center’s
inception, FirstMerit Bank has been a part
of that network, working with Giffel and
his leadership group to create funding
avenues that help the institute stay current
with technology and emerging trends in
cancer care.
“We’ve been with them since 2002, and
every time we’ve needed to implement
new technology, they’ve been there for us,”
Giffel says. “They stay in constant contact
with us, working alongside us to help
assess our most pressing needs and how
they can help us meet those needs.”
FirstMerit created the financing
packages for the linear particle accelerator
purchase in 2007 and worked with the Flint
Economic Development Corp. to create the
financing package for the 2013 accelerator
purchase. Those purchases were extremely
large and costly, and FirstMerit was able
to answer the need by digging down
and developing an understanding of the
institute’s financial situation.
“They talk to every key person here
at Genesys Hurley,” Giffel says. “They’ve
really been like a sponge, just trying
to learn as much about us as they can.
In much the same way we maintain an
ongoing dialogue with our patients and
their families, FirstMerit maintains an
ongoing dialogue with us.”
Giffel says it’s that understanding,
combined with a deep well of resources,
that sets FirstMerit Bank apart.
“It’s the combination of small-bank
attention and big-bank resources,” Giffel
says. “They allow us to maintain our focus
on the patient by giving us the peace of
mind that, if we need to add a new piece
of equipment or a new service, we’ll have
the financial backing to do so. Between
FirstMerit and the tireless work of our
own finance committee, I couldn’t ask for
better support.”
Great customer service
Are you looking to expand your
offerings to your customers?
FirstMerit can help. Contact your
relationship manager, or visit
firstmerit.com/commercial or
firstmerit.com/privatebank.
first glance
Genesys Hurley Cancer Institute
Location: Flint, Michigan
Executive Director: Bob Giffel
Phone: (810) 762-8226
Website: www.ghci.org
Founded: 2002, as a joint venture between Genesys Regional
Medical Center and Hurley Medical Center
Specializations: Medical oncology and radiation oncology.
Medical oncology services include diagnostic evaluations, second
opinions of an existing diagnosis, chemotherapy, hormonal therapy, immunotherapy, enrollment in clinical trials, pain management
and side effect management.
Support services: Includes support groups for patients, families
and caregivers, educational classes, personal financial support
programs and transportation services
For more information on Genesys Hurley Cancer Institute,
visit www.ghci.org.
MeritMatters® • 19
investments
Student loan debt:
An anvil, not a bubble
Billions of Dollars
Do rising student loan debt and
Similar to the mortgage market prior to the housing crisis,
delinquencies pose a threat to
student loans have been made easily accessible through
economic growth?
various government programs. Student loans surpassed
At a time when Americans are looking credit cards in 2012 as having the worst delinquency rates
for economic certainty, the answer is,
in consumer credit4. Further, the biggest financial burdens
unfortunately, yes and no. This comes are owned by students who can afford it the least — poorer
as no surprise. Exhibit 1 illustrates
Americans who took out smaller loans to pay for courses at
total student loan debt balance in
less prestigious institutions (often of the for-profit type), and
the U.S. is approximately $1.3 trillion,
graduated or left with nonemployable credentials.
making it the second largest category
It remains to be seen how much student debt weighs on
of household debt behind mortgages
the rest of the economy. Unlike housing-related debt, which
which total $8.3 trillion.
can be discharged during bankruptcy, bad student loans
The average 2015 college graduate left school with just
cannot be wiped clean, leaving billions of dollars of defaulted
over $35,000 in debt.1 Drivers for student loan debt over the loans on household balance sheets. This has the potential to
past decade include greater enrollment among millennials,
limit one’s ability to save money for retirement, invest or even
cuts to public funding for higher education, stagnant
purchase a home. incomes, an increasing share of low-income students, rising
tuition, parents’ impaired ability to offset costs and the fact
Are there signs that the student loan debt situation
that students are taking longer to pay their loans.
is improving?
About 40 million Americans are carrying some student
Again, the answer is yes and no. On a more positive note, the
loans2. Approximately 70 percent of students leave college
U.S. Department of Education recently reported that loans
with student loan debt.3 As a percentage of total debt, student
made directly by the U.S. government, the most common
loan debt now represents over 10 percent of total household
type of student loans, had a delinquency rate (defined by the
debt, versus just 3.3 percent in 20034.
Department of Education as 31 days behind in payment) of
The debt delinquency rate (defined as an overdue
19.7 percent, down from its previous reading of 22.2 percent5.
payment by at least 90 days) is now above 11.5 percent,
These borrowers in default owed a median of $8,9006.
4
according to the Federal Reserve Bank of New York .
However, this delinquency rate understates student-debt
Some believe student loan debt is approaching crisis
trouble. According to the Wall Street Journal, millions of
levels. Others contend that it may
Exhibit 1
be simply more of a headwind
to economic growth. Recent
Student Loans Owned & Securitized, Outstanding
increases in the prevalence
2015 Q4: 1,320.4094
1,400
of delinquent student loans
1,300
1,200
demonstrate the difficulties that
1,100
some borrowers face managing
1,000
and paying down their debt.
900
800
Defaults are concentrated among
700
borrowers who did not graduate
600
from a four-year institution and
500
those who attended for-profit
400
2007 2008 2009 2010 2011 2012 2013 2014 2015
institutions.
Source: www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2015Q3.pdf
20 • MeritMatters®
borrowers are technically not delinquent but nonetheless
are failing to pay down debt because they are in so-called
forbearance or deferment situations, in which the government
allows them to postpone payments for a period due to tough
financial spells.
What impact, if any, is the student loan debt situation
having on the housing market?
The American dream of homeownership is not dead — it may
just be deferred. Perhaps there is a silver lining that will soon
strengthen America’s housing market. Student-loan holders
are more likely to delay buying a home rather than give up
on homeownership altogether. Millennials eventually want
to own a home. They just face significant obstacles in doing
so. As a result of the Great Recession, millennials, who are
underemployed, may not have enough money for the initial
down payment necessary for a mortgage. Or they may have a
low credit rating, which often translates into a higher interest
rate on a home loan or completely disqualifies them as a
borrower. With millennials getting married and having children
later in life, there may be little incentive for them to move from
a rented bachelor pad (or Dad and Mom’s basement) to a home
of their own. But the biggest factor impeding their transition to
homeownership is student loan debt.
Yilian Xu, a professor of consumer economics at the
University of Illinois, notes that student loans are the
biggest problem for this generation, potentially disqualifying
millennials for mortgage loans due to low credit scores and
high debt ratios7. It is estimated that millennial student-loan
debtors have to spend about half of their monthly income
to make debt payments7, but if they wish to finance a home
while they are paying the student loan debt, the high debtto-income ratio effectively disqualifies them for almost all
mortgage loans. Even among those millennials who are
doing well financially, just a general aversion to debt is also
discouraging them from taking out a mortgage.
On the other side of the student loan debate, some
believe the crisis rhetoric surrounding student debt has
been overblown. More student debt means more people
are getting an education. People who get an education have
higher wages. They pay more in taxes and spend more. The
gap in earnings between college and high school-educated
workers is both large and growing. College-educated
millennials are more likely to earn higher wages and be
employed than those without a college degree. A four-year
degree yields approximately $570,000 more in lifetime
earnings than a high school diploma alone, while a two-year
degree yields $170,000 more.8
Household formation, a key driver of homeownership,
recently jumped above the long-term average about a year ago.
Millennials are either forming or wanting to form households,
as they now appear to be getting full-time jobs at an increasing
rate. The median age for a Millennial’s first marriage is now
the highest in modern history — 29 and 27 years old for
men and women respectively8. Notably, just 26 percent of
this generation is married. This compares to 36 percent of
Generation X, 48 percent of Baby Boomers, and 65 percent
of the members of the Silent Generation when they were the
age that millennials are now.9 Most unmarried Millennials
(69 percent) say they would like to marry9, but many,
especially those with lower levels of income and education,
lack what they deem to be a necessary prerequisite — a solid
financial foundation. As a
direct correlation to this, the
majority of millennials have
our expert
yet to buy their first home,
with approximately 35 percent
owning a home versus the
national homeownership rate
of 63.7 percent, according to the
U.S. Census Bureau10.
The headwind of sluggish
household formation may be
ending as job growth improves.
Most importantly, an improving
Dan Crawford,
economy will support labor
Chief Investment
growth, lessen the student debt
Officer, FirstMerit
burden and strengthen the
PrivateBank
housing market.
1. Ballast, Inc http://ballastplan.com/americas-student-loan-dilemma-the-next-debt-crisis/ 2. http://
money.cnn.com/2014/09/10/pf/college/student-loans/ 3. Marketwatch http://www.marketwatch.com/
story/every-second-americans-get-buried-under-another-3055-in-student-loan-debt-2015-06-10 4.
https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2015Q3.
pdf 5. http://www.ed.gov/news/press-releases/new-student-loan-report-reveals-promisingrepayment-trends 6. http://www.wsj.com/articles/student-loan-delinquencies-decline-1458243801
7. http://www.eurekalert.org/pub_releases/2016-02/uoia-pha020916.php 8. White House Millennial
Economic Report 9. Pew Survey Pew Survey http://www.pewsocialtrends.org/2014/03/07/
millennials-in-adulthood/ 10. http://www.census.gov/housing/hvs/files/currenthvspress.pdf
MeritMatters® • 21
community
Random acts
of kindness
Blueberry Ambassadors inspires
one good deed after another
What the Blueberry Ambassadors
program does
The Shaltzes brought the blueberry concept back to
Genesee County and created the Blueberry Ambassadors
program. A Blueberry Ambassador performs a good deed for
someone, then hands off a card that explains the program
and encourages additional kind acts. The Shaltzes found
their ideal audience in Genesee County children.
How ambassadors help
In 2013, the program started with 100 students from 10 area
schools. That increased to 25 schools and 350 students in
2015. The Flint Journal publicized the children’s stories,
allowing readers to vote on the best efforts. The Shaltzes
awarded a total of $1,500 to the winners’ schools.
Since its inception, the program has expanded
considerably. In addition to the awards to the schools,
individual winners now have a chance to receive a oneyear tuition scholarship to the University of Michigan-
22 • MeritMatters®
Flint, with the Shaltzes awarding $5,500 that’s matched by
the university.
“FirstMerit Bank called us and said they wanted to
get involved, too,” says Shaltz. “So they’re awarding a
$3,000 annual scholarship that’s also being matched by
the university.”
The Blueberry Ambassadors program has now expanded
across the county, and one of Shaltz’s favorite stories is
of a 12-year-old inner city girl who gave her umbrella to a
woman walking with two children in a downpour. But his
favorite story happened when he regularly began paying for
cars in line behind him at McDonald’s, giving the cashier
a Blueberry Ambassadors card to pass on. One day the
cashier refused to take his money. Instead, she gave him a
Blueberry Ambassadors card from a driver ahead of him.
This year’s ambassadors, more than 1,000 ranging in
age from 8 to 18, have each promised to do three acts of
kindness.
How you can help: To learn about becoming
a Blueberry Ambassador, visit
ImConcernedAbouttheBlueberries.com.
About the organization
Name: Blueberry Ambassadors
Website: ImConcernedAbouttheBlueberries.com
Location: Genesee County, Michigan
Email: [email protected]
Mission: To extend random acts of kindness
photo courtesy of blueberry Ambassadors
To Phil and Ardele Shaltz, a “blueberry” is something that
seems trivial to some, but poses a dilemma to others.
“Think about a busy street,” Phil Shaltz says. “Crossing
it isn’t a problem to most of us, but it’s a blueberry to a
90-year-old.”
Why a blueberry? The answer is the result of the
Shaltzes’ trip to Alaska and an encounter with a young
adventure guide on a zip line.
“He shouldn’t have had a care in the world, but he
looked troubled,” says the owner of Shaltz Automation Inc.
When pressed, the guide said, “I’m concerned about the
blueberries.”
While his first instinct was to laugh off concern
over a local crop under drought conditions, Shaltz soon
realized that what seemed trivial to him was a big issue
— a blueberry — to others. So the Shaltzes founded the
Blueberry Ambassador Program.
Legacy
William
*
Family is a top priority for us. Which is why we want to know that the
decisions we make now will ensure a bright future for us, our children
and our grandchildren. Our FirstMerit Client Advisor understands our
aspirations and helped us develop a long-term investment plan. He also
helps us manage our day-to-day banking needs so we can focus on what’s
important. We have peace of mind knowing our legacy will live on.
TO L E A R N MOR E A B O U T
F I R S T M E R I T P R I VA T E B A N K , C O N T A C T :
Brad Fogleman, PrivateBank Team Lead,
at 810-424-3070 or [email protected].
Follow the latest market trends
@firstmerit_mkt
*William reflects a composite of clients with whom we’ve worked; he does not represent any one person.
Non-deposit trust products are not insured by the FDIC; are not deposits or obligations of FirstMerit Bank, N.A, or any of its affiliates; are not guaranteed by
FirstMerit Bank, N.A or any of its affiliates; and are subject to investment risk, including possible loss of principal invested.
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at 810-342-7074 or [email protected].
Todd Gregory, Community President, Saginaw,
at 989-776-7465 or [email protected].
Dave Green, Community President, Bay City,
at 989-894-6715 or [email protected].
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