M a n c h e s t e r S P R I N G 2 0 2 0

www.fmbank.biz e-mail: info@fmbank.biz

Manchester 101 E Main St 563-927-4475

Cedar Rapids 4000 1st Ave NE 319-366-8681

Cedar Rapids 200 1st St SW 319-366-4040

Anamosa 220 W Main St 319-462-6878

Monticello 111 E 1st St

319-465-9158

Lino Lakes, MN 7641 Lake Dr 651-784-8000

Vadnais Heights, MN 845 E County Rd E

651-429-8000

INSIDE

WELCOME KAYLA PINS ..................... 2

F & M FUNDRAISER ................... 2

PREPARING FOR THE ACT ........................... 2

AED COMPLIANCE ........... 2

IRA UPDATE ..................... 2

CARDVALET ..................... 3

IOWA REALTY .................. 3

F & M BOARD OF DIRECTORS ... 4

Dear Clients,2019 was a momentous year at F & M Bank. We made strategic decisions that allowed us to be the right size for future growth. With the sale of our three central Iowa locations and a solid financial performance, we were able to post earnings just shy of $16.2 million. With any sale, one would expect a sizeable drop in assets, but F & M was able to end the year at $582 million in assets, down only $16 million. We saw the greatest growth in our equity and reserves, which are now in excess of $84.6 million, up 27% year over year. Growing a strong capital position is essential to helping our clients succeed as well as fueling our expansion efforts.

On a national scale, 2019 brought new records in the stock market, continued low unemployment numbers and a cautiously optimistic business outlook within many industries. National GDP growth rates have eased back to just above 2.0%, which is one of the reasons why the Federal Reserve decided to cut the Prime Interest Rate three times over 2019, settling in at 4.75%. Many forecasts project a very neutral year on future rate cuts or rate hikes. Mortgage rates also revisited near all-time lows in 2019, which produced an unexpected but much welcomed refinance boom. Most economists believe 2020 will likely be a repeat of 2019, although many companies might hold their cards close with the impending presidential election.

On the Ag side, the headwinds and challenges many farmers experienced in 2018 remained constant in 2019. Low commodity prices, increased international production of corn and soybeans, along with inconsistent yields, all provided challenges throughout the growing and harvesting seasons. 2019 was a very wet year both at time of planting and harvest. A shortage in propane throughout the Midwest left farmers waiting to harvest until they had the necessary propane to dry their wet crops. Trade talks with China continue to head in the right direction in concert with a newly signed USMCA, which has replaced NAFTA. Until demand finds a way to out pace supply, commodity prices will continue to remain low. Early signs show another challenging year ahead for farmers and those agricultural businesses.

The team members of F & M Bank continue to be our most important asset. Without their passion and drive to serve you, our valued clients, F & M Bank would be just like our competition. Our mission is to “Exceed Client’s Expectations.” The only way to make this possible is by investing in and providing our team with the necessary tools, education and quality work environment. Throughout 2019, our team openly embraced the lessons offered by the book The Outward Mindset, which will only enhance the strong culture we enjoy at F & M. We have recently made some key hires for long-term succession planning and look forward to seeing those team members grow.

2020 promises to be another great year for not only the clients and businesses we serve, but also our F & M Team. Our relationship with you, our valued clients, will continue to be a top priority of ours. We certainly appreciate the confidence you have placed in F & M Bank. I wish you much prosperity and continued success in 2020.

Sincerely,

Nathaniel W. Dunn President & CEO

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F & M will once again be hosting the ACT Prep Session for area High School Juniors in March! This will be F & M Bank’s 7th year sponsoring the event. The ACT Test is a College

Readiness Assessment that the students take to show colleges their level of readiness for school in English, Math, Reading and Science. Virtually all 4-year colleges require either the ACT or the SAT to apply.

PREPARING FOR

Welcome Kayla PinsKayla has joined F & M Bank as an Administrative Assistant. Kayla grew up in the area on a farm north of Earlville graduating from Maquoketa Valley High School in 2011. She went on to earn an A.A.S degree from Kirkwood. She lives south of Manchester with her better half, Marcus, and new puppy, Ellie Mae. Kayla enjoys live music and often spends her free time attending concerts. She is outdoorsy and loves spending time with friends and family. Kayla is delighted for this new opportunity and is excited to be a part of the F & M team!

F & M Bank is pleased to announce all of our locations are now AED compliant! We would like to thank Hawkeye Fire & Safety of Cedar Rapids for installing the life-saving devices for us!

We are in need of:We are in need of:New or gently used purses New or gently used purses

and wristletsand wristlets

Drop off at any Iowa F & M Bank locationDrop off at any Iowa F & M Bank location

Help make our fundraiser a success!Help make our fundraiser a success!

Our annual fundraiser sale will be held Our annual fundraiser sale will be held Spring 2020!Spring 2020!

All proceeds from the sale will be donated toAll proceeds from the sale will be donated to

Relay for LifeRelay for Life The SECURE Act and what it means to your IRACongress passed the SECURE (Setting Every Community Up for Retirement Appropriations Act, 2020) in December of 2019. This new Act contains several major IRA related provisions. The main goals of the SECURE Act are to expand retirement savings, simplify existing rules and preserve retirement income. All changes took effect on January 1, 2020. Some of the new law changes are:

• Delayed age of beginning RMDs. The age when required minimum distributions (RMDs) from Traditional IRAs must generally begin is increased from age 70-1/2 to age 72. There will not be any changes for IRA owners who attained age 70-1/2 before the end of 2019.

• Birth or adoption penalty exemption. Up to $5,000 is exempt from the 10% early penalty tax for distribution taken for the birth or adoption of a child (or an individual who is incapable of self-support).

• Traditional IRA contributions at any age. Traditional IRA owners with earned income can make IRA contributions at any age. The exclusion of qualified charitable distributions from income may be reduce if deductible contributions are made to a Traditional IRA after age 70-1/2.

• More rapid payouts to non-spouse (and other) beneficiaries. Non-spouse beneficiaries (with limited exceptions) will be required to distribute inherited amounts within 10 years. There are exceptions for disabled and certain chronically ill individuals, beneficiaries who are not more than 10 years younger than the decedent’s age and minor children of the descendent.

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Home Sellers Can Prepare for the Spring MarketStart PackingIt may sound crazy to start packing months in advance of your move, but since you’ll eventually need to do this anyway, you might as well get organized now. We’re not suggesting you pack up your kitchen and eat off paper plates, but you can sort through your storage closets, attic, basement or garage to determine what you want to keep, what to give away and what to sell. Boxing up items will make your space look larger and neater when it’s time to show your home. You can also get an idea of whether you need to rent a storage facility while your home is on the market.

Clear Away ClutterOnce your home is on the market you’ll need to keep it as neat as possible, One way to make that easier is to reduce the amount of clutter you have on your shelves and surface. Put away items that are regularly on your kitchen sink and pack away the family photos that gather dust. Buyers want to see a fantasy version of your house, in which they can envision living.

Improve Your HomeWhile you don’t necessarily want to do a major, expensive renovation project before you sell, you can make minor repairs and improvements that will make your home look fresher to buyers. Try things such as replacing the caulk and grout in your bathroom, updating old or rusted ceiling fans and light fixtures, and changing switch plates, doorknobs and other hardware for a clean and neat appearance. Consider painting your front door and trim even if your rooms don’t need new paint.Your choice of a listing agent will make a big difference in how quickly your home sells and how much profit you’ll realize. Real Estate Agents with a marketing plan and local knowledge of the market is extremely important.

Teresa Greve and Mary Kay Starks

www.fmiowarealty.com108 South Franklin StreetManchester, IA 52057Each Office Independently Owned and Operated

101 E Main St, Manchester, IA 52057 220 W Main St, Anamosa, IA 52205 4000 1st Ave NE, Cedar Rapids, IA 52402 200 1st St SW, Cedar Rapids, IA 52404111 E 1st St, Monticello, IA 52310 7641 Lake Dr, Lino Lakes, MN 55014 845 E County Rd E, Vadnais Heights, MN 55127

PRSRT STDU.S. Postage

PAIDPermit No. 54Belmond, IA

250,000

psi2go.net

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