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Minnesota Spring 2017

Anamosa220 W Main St319.462.6878Monticello111 E 1st St319.465.9158Lino Lakes, MN7641 Lake Dr651.784.8000Vadnais Heights, MN845 E County Rd E651.429.8000

Manchester101 E Main St563.927.4475Cedar Rapids4000 1st Ave NE319.366.8681Cedar Rapids200 1st St SW319.366.4040Cedar Rapids2350 Edgewood Rd319.382.2471

Inside this IssueSHAZAM BOLT . . . . . . . . . . . . . . .2

BlueZone Worksite . . . . . . . . . . .2

HSA and IRA . . . . . . . . . . . . . . . .2

New Employees . . . . . . . . . . . . .2

Is Now a Good Time to Buy? . .2

Panama Canal Trip . . . . . . . . . .3

East Coast Fall Colors Trip . . . .3

McDonald True North Award .3

Save the Date . . . . . . . . . . . . . .3

Winter Toy Drive . . . . . . . . . . . . .3

Community Champion . . . . . .3

Business Showcase . . . . . . . . . .4

Dear Clients,

Timothy R. GermanPresident and CeO

Sincerely,

Timothy R. German President & CEO

enrolling in ID TheftSmart are all excellent ways to be proactive in combating fraudulent activity. To prevent fraud in the first place we encourage you to avoid giving out personal information over the telephone or the computer, guard your PIN numbers closely and watch for skimmers on gas pumps, ATMs, or other devices when you are using your debit/credit cards. Our team is here and ready to help you download or activate any of the tools that are available to defend against fraud. We want to help you protect your accounts and your information to the fullest extent!

We continue to grow stronger after our merger with our sister bank, Security Savings Bank in Wright County, Iowa. Ideas and the talents of our team members are flowing more freely between the locations than they ever had in the past. Utilizing the best practices from each location and sharing them throughout the organization has proved to be an improvement to the client experience and to our efficiency.

As we enter our 92nd year, our dedicated team continues to work every day to deliver exceptional service and personalized financial solutions to you, our valued clients. We fully understand that we will not be successful unless you succeed. Thank you for the opportunity to serve you and best wishes for an outstanding 2017.

In 2016 we experienced another year of steady and conservative growth with total assets increasing 3.8% to over $553 million. This growth was driven largely by a focus over the year on increasing our deposits. With successful results from this focus, total deposits increased nearly 12% in 2016 to $473 million, funding prior growth and supporting the 3% increase in loans experienced during 2016. After another solid year in terms of income, our capital and reserves grew to over $66 million. Our mission continues to be “Exceeding Clients’ Expectations”. With that in mind, we continue to seek prudent growth that provides the stability you, our valued clients, deserve and expect from F & M.

After several years of declining to flat interest rates which resulted in historically low levels, we now have begun to see interest rates rise. As always, our clients on the deposit side are excited for this change while those on the borrowing side are somewhat concerned. While more interest rate hikes are anticipated for 2017, as the consensus seems to be that increases will be moderate as long as the economy continues to grow.

In general terms, the economies in our markets are fairly strong and are indicating some optimism for growth in 2017. However, here in the Midwest, whether in a larger metro market or a smaller rural market, we are all impacted by agriculture. As we began 2016 crop season, the outlook for agriculture was not a very pretty picture. With the high cost of inputs and the prediction for low commodity prices, the press had us convinced it was not going to be a good year in agriculture. Fortunately, due largely to excellent crop yields, better expense control, and better than expected commodity prices, the majority of the farmers across the region appear to be in position to repay their operating debt and cover any term loan payments. Although it may take time for the large ag equipment manufacturers and other related ag businesses to return to full production, there is optimism that the bottom of the market may not be as low as expected.

Over this past year, fraudulent activity seemed to become much more prevalent. The new chip technology incorporated into debit and credit cards is expected to help, but we strongly encourage you to be vigilant in monitoring your account and mindful when conducting financial transactions. Monitoring your accounts through our mobile banking app, internet banking, utilizing Shazam Bolt$ and

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BlueZone Worksi te

On Tuesday, December 13th Kathy Keane from Mercy Care presented F & M Bank & Security Savings Bank with the employee BlueZone Worksite Designation certificate. A big thank you to Lora Jean Bowers for leading the wellness validation process! The worksite validation process was completed over the last year.

Is Now Still a Good Time to Buy?According to the National Association of Realtors®,

2016 was the best year in a decade for homes sold. The Twin Cities benefited from record low mortgage rates and a very good local economy. Many people are asking… “Is now still a good time to buy?”

According to reports, mortgage rates are expected to rise in 2017, but not enough to remove the financial advantage to buying a home. The Case-Shiller Home Price Index indicated that prices in the Minneapolis region are up 5.51% year over year.

If you or someone you know needs help reviewing the financing options available to purchase a home, please do not hesitate to contact me.

Sam recently joined the F&M team as a Customer Service Representative at our Lino Lakes, MN location. He grew up just down the street from our Lino location and attended the University of North Dakota. During his time in Grand Forks he was a student-athlete on the UND baseball team, worked as a bartender/server, and received a Bachelor’s Degree in Communication. Over the summer of 2016 he moved to Alexandria, MN to spend time living the lake life at the cabin, bartending at Bug-a-Boo Bay Caribbean Club and even got to travel to Argentina with his sister. Through all his travels he has found his way back home to Lino Lakes.

In his free time, Sam enjoys scuba diving, water skiing, baseball and softball, hockey, and golfing; anything that keeps him active. Please join us in welcoming Sam to our team.

Valerie Block recently joined the F&M team as a Customer Service Representative at the Vadnais Heights, Minnesota location. Prior to joining the team, Val has been a stay-at-home mom for the past 16 years to her 3 children ages 10, 14, and 16.

Born in Singapore, Val has lived in 2 countries and 4 states before making Minnesota her home, with her husband, for the past 21 years. Graduating from Michigan State University with a Bachelors Degree in Clothing and Textiles, and attaining a Masters Degree in Curriculum and Instruction from University of Colorado, Denver, Val spent some of her professional career as an elementary school teacher and has had experience in the retail world. In her free time she enjoys crafts, spending time with her husband, children and friends, and traveling. Please join us in welcoming Val to our team.

F & M Bank Welcomes New Employees

Jenna Juetten Mortgage

Loan OfficerMLO Unique Identifier

#1145486 • jjuetten@fmbank.biz •

direct 763-957-5257

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Come and enjoy Lunch With Us! at Vadnais Heights F & M on Tuesday, June 20th

F & M Choice EventsRegency Club F & M Choice EventsRegency Club F & M Choice EventsRegency Club

February 17 – 28, 2018Panama Canal

10 Day Southern Caribbean SeafarerTRAVEL INFORMATION MEETING:

Manchester F&M Bank on Wednesday, April 5th at 5.30 p.m.

(refreshments will be served)RSVP: LuAnn 563-927-4475

Join us as we cruise this beautiful area leaving Fort Lauderdale, visiting Curacao, Aruba, Colon,

Puerto Limon and spend time sailing.

Save the dates and join us for these wonderful trips in 2018Regency Trips for 2018

East Coast Fall Colors Trip Maritime Adventure

.

September 2018

Call Sue 651-784-8000 or LuAnn 563-927-4475

for more details or to make your booking.

NATIONAL PARKS OF AMERICA’S GREAT SOUTHWEST

August 21-29, 2017Grand Canyon, Monument Valley, Arches,

Canyonlands, Capitol Reef, Bryce, Zion – join us for this fabulous trip. Spaces are filling fast!Best of Britain

JUNE 17 - 28, 2017

FULL

Vadnais Heights and Lino Lakes branches held Toy Drives this year in conjunction with Vadnais Heights Lions Club and Beyond the Yellow Ribbon, Lino Lakes.

Winter Toy Drive

Join us for a 13-day trip visiting some highlights of

this beautiful maritime area taking in sites and flavors

from Boston, through Maine, Bar Harbor, New Brunswick,

Nova Scotia, Halifax, and Prince Edward Island.

Call Sue 651-784-8000 or LuAnn 563-927-4475

for more details or to make your booking.

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101 E Main St, Manchester, IA 520574000 1st Ave NE, Cedar Rapids, IA 52402200 1st St SW, Cedar Rapids, IA 52404 2350 Edgewood Rd, Cedar Rapids, IA 52404 220 W Main St, Anamosa, IA 52205111 E 1st St, Monticello, IA 523107641 Lake Dr, Lino Lakes, MN 55014845 E County Rd E, Vadnais Heights, MN 55127

Jessie Tomme Salon & SpaHay Chix A Home Enhanced

Lions ClubSavoys Pizza UNRLVadnais Heights Salvation Army

SBUSINESShowcase