BEGIN THE NEW YEAR WITH A BUDGET

In these tough economic times, it is more important than ever for families to develop a budget and stick to it. Rainy-day funds, savings for college, or just making your rent payment can all be made easier with a budget. Americana Community Bank supports its customer’s efforts to budget and save by offering expert guidance.

“A financial goal can be very motivating,” said Jon Cira, Senior Vice President, Commercial and Retail Banking. “Whether you are saving for a family vacation, a down payment for a house or a new pair of shoes, if you stick to a plan, you’re likely to achieve your goal.”

Putting together a household budget requires time and effort. ACB offers the following steps to create a budget:

• Be a Spending Sleuth. Track every penny you spend for a month. Keep receipts and write everything down. This will be an eye-opening experience and will help you see where you can cut back.


• Count Your Money. Determine the total amount of money coming in. Include only your take home pay (your salary minus taxes and deductions). Your income may also include tips, child support, investment income, etc.


• Itemize, Categorize, Organize. Review the records and receipts you’ve been collecting over the last month. Categorize your spending using a budget sheet like the one offered by the American Bankers Association Education Foundation (also available in Spanish).


• Aim for the Goal. Set a realistic financial goal and develop your budget to achieve that goal. Subtract your monthly expenses from your monthly income. Find ways to cut spending and set limits on things like entertainment expenses..


• Save, Save, Save. Make one of your financial goals to save a certain dollar amount each month. Start an emergency fund if you don’t already have one. You never know when you may need it.


• Stick to it. Keep track of your spending every month. Update your budget as expenses or incomes change. Once you achieve your financial goal, set another.

ACB ENCOURAGES CUSTOMERS TO ‘GET SMART ABOUT CREDIT’

In recognition of National Get Smart About Credit Day on Oct. 20, Americana Community Bank is urging customers to educate themselves on responsible credit habits. “No matter your age or financial stance, it’s never too early to get smart about credit,” said James Swiontek, Senior Credit Officer. “Learning the basic fundamentals of credit provides customers with a foundation that will prove invaluable throughout their lives.”

     ACB encourages customers to follow these Dos and Don’ts of Credit:

• DO pay at least the minimum due and contact your creditor if you have trouble making payments. This will help you to avoid late fees and a rising APR. To pay off your balance quicker, pay more than the minimum due. If you are unable to make the minimum monthly payments, let your creditor know so they can work with you to create a more manageable payment plan.


• DO be wary of anyone who claims they can "fix" your credit report. No one can legally remove negative accurate information from your credit history. The only thing that can fix a credit report is time and a positive payment history.


• DO read the fine print on the credit application. The application is a contract, so read it carefully before signing. Credit card companies are very competitive so interest rates, credit limits, grace periods, annual fees, terms and conditions may vary.


• DON'T feel pressure to get a credit card. If you don't want one, you have the right to say "no." Under the new CARD Act 2009 consumers aged 18-21 cannot be solicited for credit. If you no longer wish to receive prescreened offers, opt out by calling 1-888-5-OPTOUT (1-888-567-8688) or visit www.optoutprescreen.com.


• DON'T ignore the warning signs of credit trouble. If you pay only the minimum balance, pay late, use cash-advances to fund daily living expenses or transfer a lot of balances you might be in the credit danger zone. Talk to a financial counseling organization to regain control of your finances.


• DON'T share your credit card number. Never give out credit card or personal information if you have not initiated the transaction. Be aware of identity theft and phishing scams that ask for credit card numbers. If you suspect that your identity has been compromised, file a complaint with the Federal Trade Commission by calling 1-877-ID-THEFT (1-877-438-4338), or visit www.ftc.gov/idtheft

Fraudulent FDIC Emails

The Federal Deposit Insurance Corporation (FDIC) has received numerous reports of fraudulent e-mails that have the appearance of being from the FDIC.

The e-mails appear to be sent from various “@fdic.gov” e-mail addresses, such as: “protection@fdic.gov,” “admin@administration.fdic.gov,” or “service@admin.fdic.gov.”

The fraudulent messages state:

“Dear clients,
Your account ACH and Wire transactions have been temporarily suspended for your security, due to the expiration of your security version. To download and install the newest updates, follow this link. As soon as it is set up, your transaction abilities will be fully restored. Best regards, Online security department, Federal Deposit Insurance Corporation.”

These e-mails and links are fraudulent and were not sent by the FDIC. Recipients should consider these e-mails an attempt to collect personal or confidential information, or to load malicious software onto end users’ computers. Recipients should NOT access the link provided within the body of the e-mails and should NOT install any related files or software updates.

If an e-mail is unexpected, unfamiliar or appears to be spam, do not open attachments or download information from that e-mail.

Financial institutions and consumers should be aware that these fraudulent e-mails may be modified over time with other subject lines, sender names, and narratives. The FDIC does not directly contact bank customers, nor does the FDIC request bank customers to install software upgrades.

Information about counterfeit items, cyber-fraud incidents, and other fraudulent activity may be forwarded to the FDIC’s Cyber-Fraud and Financial Crimes Section, 3501 North Fairfax Drive, CH-11034, Arlington, Virginia 22226, or transmitted electronically to alert@fdic.gov.

Questions related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at: http://www2.fdic.gov/starsmail/index.asp

For your reference, FDIC Special Alerts may be accessed from the FDIC’s Web site at www.fdic.gov/news/news/SpecialAlert/2011/index.html

To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html

Topic A: No Such Thing As Free Checking

TANSTAAFL is not an acronym that rolls off the tongue, but it stands for a well-known phrase and economic principle: There ain’t no such thing as a free lunch.

If my Google search can be trusted, the saying originated as the punch line of an economics joke printed in the El Paso Herald-Post back in 1938. The joke involved a king who asked his advisers for a succinct summation of economics but instead got several-hundred-page volumes. Each adviser was executed for his lack of brevity, prompting the last one to come up with something really short and sweet.

We economists may still suffer occasionally from a lack of brevity, so the TANSTAAFL truism remains a handy paraphrase. It’s essentially how you might boil down a three-page backgrounder I wrote recently on what’s happening to “free” checking accounts.

Recent legislative and regulatory events, including impending restrictions on interchange fees and new overdraft protection rules, have prompted media stories in recent months suggesting the end of free checking accounts is near.

The truth is, checking never has been free. Sure, banks have been able to offer such accounts at little or no cost to customers, but only because banks had other revenue streams that helped to absorb the true costs of providing the service. If those revenue streams are reduced to a trickle, banks will inevitably need to reexamine the features and pricing of their customer accounts. This is especially necessary since at least half of all checking accounts are considered unprofitable in a good year.

This is no easy task. Once “zero” is established as a price point, it’s hard to climb back without suffering a spate of criticism -- hence the backgrounder, which is aimed at explaining, to reporters and policymakers, the true costs of transaction accounts. These costs range from the tangible prices of ATMs, bricks-and-mortar infrastructure, software and equipment, to the less tangible costs associated with compliance and fraud.

In a feat of dis-ingenuity, retailers this year convinced Congress that if interchange fees were lowered, consumers would pay less -- as if the costs of interchange would evaporate. Retailers certainly price their products to reflect their costs, including interchange, utilities and staffing, to name a few. So, consumers theoretically could save pennies on a frappucinno, or a few bucks on a flat-screen -- if you believe retailers will actually lower their prices to reflect their lower interchange rates. But no one believes they will and Congress didn’t require retailers to do so.

The real expenses of the debit card system will need to be made up elsewhere -- possibly through the loss of “free” checking for consumers or the restoration of minimum balance and direct deposit requirements.

Consumers ultimately end up paying the costs for the many benefits of using their debit card and will still pay higher prices at the retailers. That’s not giving consumers a break.

The Great Recession has policymakers and pundits debating free-market principles and the shortcomings of capitalism. The invisible hand theory -- that public welfare is ultimately served when parties act in their self-interest -- is understandably out of vogue at the moment. But the wisdom of the fabled king’s adviser -- TANSTAAFL -- still stands and should be remembered next time policymakers want to give consumers something for nothing.

On-line Security Alert!

Dear Valued ACB Customer,

We’ve received information that a major e-mail campaign has been launched, deploying the infamous ZeuS Trojan e-mail, which sends spam messages in disguise. Some of the items that can appear to be legitimate, but are attempts to fraudulently gain access to your information are:

Fraud Alerts from the IRS (Internal Revenue Service)
Twitter Account Hijack Warnings
Suggestive Youtube.com Videos

The fraudulent IRS e-mail often uses “Notice of Underreported Income” as the subject line and encourages the recipient to click on a hyperlink to review a tax statement.

If an e-mail is unexpected, unfamiliar or appears to be spam, do not open attachments or download information from that e-mail.

If you experience any telephone or email requests for this type of information, please inform your ACB branch and call the Minnesota Fraud Enforcement Partnership (MFEP). Your information will help the partnership work to shut down the scammer’s main form of communication with victims: a phone number or email address. To contact MFEP go to www.mnscams.org or call 866-347-0911. Please leave a message with your name, call back number and the type of fraud and someone will return your call.

Interest Rates to Remain Low

Interest rates will remain at exceptionally low levels despite signs the economy is recovering, Federal Reserve Chairman Ben Bernanke told the House Financial Services Committee yesterday. Bernanke explained that the economy is still struggling in the wake of the financial crisis, with high unemployment and a troubled housing market. He added that inflationary pressure, the main driver of a tighter monetary policy, is likely to remain subdued.

“The Federal Open Market Committee continues to anticipate that economic conditions -- including low rates of resource utilization, subdued inflation trends, and stable inflation expectations -- are likely to warrant exceptionally low levels of the federal funds rate for an extended period,” he said.

Check to Check

A new study finds more than 50% of people have difficulty covering monthly expenses. In addition, 9% said they have taken a loan against their retirement account during the past year and 12% had household expenses that exceeded income. Almost 50% of people surveyed don’t have enough savings set aside to cover expenses for 3 months if they became sick, lost their job or had some other emergency.

Minnesota Bankers to Visit Legislators

The Minnesota Bankers Association (MBA) will welcome banking professionals from around the state to St. Paul on Tuesday, February 16, for the MBA Bank Day at the Capitol. The MBA holds the event annually to provide bankers an opportunity to hear legislative leaders speak about current industry and state issues, and meet with their elected officials. Natasha Schroeder, Executive Vice President, Compliance, Security and BSA Officer for Americana Community Bank will represent ACB at the 2010 Bank Day at the Minnesota State Capitol.

The day will begin at 9:30 a.m. at the Hilton Garden Inn with remarks from state political leaders. The tentative list of those scheduled to appear includes Minnesota House Minority Leader Kurt Zellers, Minnesota Senate Majority Leader David Senjem, Minnesota House Majority Leader Tony Sertich, Minnesota Senate Commerce Committee Chair Linda Scheid, Minnesota Senate Commerce Committee Chair Joe Atkins, and Minnesota Senate Commerce Committee Vice Chair Dan Sparks.

After a break for lunch, Dr. Narayana Kocherlakota, President of the Federal Reserve Bank of Minneapolis, will deliver the keynote address. This will be Dr. Kocherlakota's first public speech in his current role with the Federal Reserve Bank of Minneapolis.

Following the keynote address, bankers will move to the Capitol for afternoon meetings with their local legislators and to attend various committee hearings.

The Minnesota Bankers Association is the state's largest trade association devoted exclusively to the representation of commercial banks. The MBA was founded in 1889 and represents 95% of Minnesota's chartered banks. The MBA is proud to support our member banks as they work to ensure vital communities throughout the state. For more information, please visit our Web site at www.minnbankers.com.

Greetings from the President

Dear Clients, Partners, Friends, and Associates,

Hello. I would like to take this opportunity to introduce myself and my plan for Americana Community Bank. First though, I would like to say thank you for the many well-wishes and congratulatory comments I received regarding my recent promotion. “Thank You!”

Americana Community Bank is a family owned and locally run community bank. I am proud to say that I am a member of the family. I am the son of the owner, Bob Dittrich. As many of you know from your own businesses, when you are part of a family run business the entire staff become extended family. However, actual blood relatives that serve in the bank with me are my wife of 10 years, Jody; my sister, Katherine; my nephew, Sam; and as Bank Directors, my parents, Bob and Pat. It is likely you will hear from these folks and others in the “extended” family in future editions of this letter.

I have worked for ACB for 13 years as of this past June. I am excited, happy, proud, and ready to be given the honor of serving as President and CEO for this organization. During the recent MLB All-Star Game, one of baseball’s current top players, Albert Pujols, was asked if a player of his caliber still gets nervous on the grand stage of an All-Star game. Albert responded, “My father told me, if you ain’t nervous, you ain’t ready.” As soon as I heard this, it resonated with me. I think he was talking about how being nervous gives you a heightened sense of awareness. It gives you a competitive edge, while being over-comfortable or over-confident can be a bad thing in sports. I think this is true for business as well. I think he was also referring to the fact that being nervous means you care, about how you perform, about the results of your efforts, and about how you present yourself in the given situation. So…I guess I’m ready!

As you are all aware, this economy has given our communities challenges the likes of which most of us have not seen in our professional lives. But with the team I have to work with here at ACB, despite the nerves (or maybe because of them), I feel confident and ready to meet the challenges presented to us and our communities.

Americana Community Bank is proud to be a part of the communities we serve. It’s fun for me to be a part of the community banking world, even in these turbulent times, because I know that what we are doing in our communities helps them grow, prosper, and even fulfill dreams. It is truly an honor to work with clients who make a real difference in their communities. Employees of Americana Community Bank have been key fabric of their communities for 126 years and I am honored to carry the torch for a time as we strive to continue for generations more. Please come in, work with our community bankers, and let us show you what old fashioned service with modern technology and conveniences is all about. If you like what we’re doing, let us know. If not, share with us how we can serve you and our community better. Feel free to contact me or any of our bankers to let us know what you are thinking.

ACB Announces Adam Dittrich New President, CEO

Chanhassen, MN—Americana Community Bank (ACB) has announced the promotion of Adam Dittrich to the position of President/CEO. Dittrich, a native of New Ulm, MN and currently a Victoria, MN resident, will oversee all functions for the five branch community bank and serve on their Board of Directors.

“Adam's promotion is an integral part of the bank's plan to remain independent and family-owned for generations to come,” said Robert Dittrich, Americana Community Bank Chairman of the Board. “His business instinct and natural leadership ability are a valuable asset to our organization and the communities we serve as he helps us manage the connections between the financial resources provided by the ACB team and our customers.”

Most recently the Chief Financial Officer for the bank, Adam Dittrich has 13 years of experience in the financial services industry. Dittrich has also served in bank positions ranging from teller to Senior Information Technology manager.

A relationship-oriented banking professional, Dittrich remains committed to ensuring that Americana Community Bank continues its long-standing history of excellent service and putting the customer first. According to Adam Dittrich, “Americana Community Bank will continue to be the local bank business owners and individuals can count on for the best in financial services. It is our intent to maintain involvement in our communities and dedication to the customers served by all five of our full service locations.”