Quarterly Newsletter

Customer Spotlight
smoked and roasted meats and fish, and of course their traditional sandwiches and cookies. In 2004, The Judds realized after financing their new home, how competitive bank rates were. So, after some talking with other businesses, they were directed to F&M Bank. Mark Gorman, with Gorman and Gorman, put us in touch with Frank DiTillo at F&M Bank. Frank put together a very favorable SBA loan package that allowed us to reduce our interest rate and reduced our monthly payments resulting in an increased cash flow, says Patrick. They really understood the needs of our business and appreciated the opportunities we had to grow. When asked of all the things that they have learned along the way, what was most important to their success and has brought them to where they are today, the Judds said There are a couple Bakery & Caf key things that are always relevant and important when running ones own business. Its simple: hard work, good financing, excellent customer When Patrick and Carolyn Judd, owners of and community relationships, committed and The Daily Bread Bakery & Caf located in St. talented staff, and a never-ending quest for Louis, MO, set out to start their own business, knowledge and improvement. My favorite part of they started from the ground up. In 1989, my job is to talk with our customers and develop ambitious and recent college graduates, Patrick new ways to grow our business through new and Carolyn started The Daily Bread with nothing product and innovation, says Patrick. more than an irresistible urge to consume as The Daily Bread has been in business for more much knowledge about the baking industry as than 20 years, and F&M Bank is proud to play a they could and about $80 worth of old used small part in their continued success. F&M Bank equipment, some of which was manufactured in has helped us to focus on what it really takes to the 1940s. In the early years, the couple featured run a business instead of worrying about cash cookies and sandwiches in their first shop in flow, says Patrick. The Daily Bread Bakery & Caf University City, MO. A couple years later they is located at 11719 Manchester Rd., Saint Louis, added catering and delivery to their service. MO. Phone orders can be placed by calling: 314Today, after tapping into some knowledge given 909-0010 and their hours are: Mon-Sat 6:00 am to them by some German and French bakers, to 5:00 pm, Saturdays from 6:30 am to 5 pm, and they now offer a wide variety of fresh-baked Sundays 7:30 am to 4:00 pm artisan bread, pastries, soups, salads, hearthbaked pizzas, their very own roasted coffees,

Summer 2011
volume 5 | issue 1
Branch Focus: Springfield, MO Horizons Club In Memory of Bayard Plowman Home Loans... VA or FHA? ABA Certifications Mark Gorman Appointed to Missouri Residential Mortgage Board In Memory of Michelle Marie Mickey Thiel Understanding Social Security Planning Outstanding Commitment in the Banking Field

The Daily

Bread

Hannibal, MO 505 Broadway 3912 Market Street Highway 61 North

Monroe City, MO OFallon, MO Palmyra, MO Shelbina, MO

Springfield, MO St. Louis, MO Quincy, IL

Account Information 1.800.606.6414 MO Toll Free 1.877.221.6424 www.bankfm.com

Branch Focus
Springfield, MO 1540 East Primrose Springfield, MO 65804 417.889.1920 M-F 9:00 a.m. - 5:00 p.m.

Meet the Gorman & Gorman Springfield Team

Branch Manager

Don Carriker

Drexel Swanson
Loan Officer

Loan Processor

Amy Hayes

Marketing Assistant Loan Officer Assistant

Tyy Ward

Allisa Hester
Loan Officer Assistant

As we go to print, you may be one of the 47 people traveling the Mississippi River on the Celebration Belle. Enjoy! April 14th was a busy day with the Senior EXPO and our own version of Antiques Roadshow. Thank you to our Horizons Club members who brought items for our three auctioneers/antique dealers to examine and appraise. We all appreciated hearing the story and family history behind these items. Dont forget the National Tom Sawyer Day Parade on July 4, 2011. We will again have special bleacher seating in front of the bank, free parking in the bank lot and free water!! The deadline has passed for reserving a place on the Portland trip. However, we are still taking reservations for: Culinary trip to The Hill, Fireside Theatre & House on The Rock and Best of Italy. The Fireside Dinner Theatre is one of the Midwests most popular entertainment destinations and the only Actors Equity dinner theatre

in Wisconsin. The Klopcic family is proud to celebrate 47 years of hospitality in charming, historic Fort Atkinson. Thousands of people return to The Fireside year after year, earning it a reputation as the Midwests premier dinner theatre and Wisconsins number one year-round motor coach attraction. While at The Fireside Dinner Theatre, browse the unique gift shops, enjoy award-winning cuisine, and top off the evening with one of the best professional theatre experiences Wisconsin has to offer. Our Best of Italy trip in November is almost full. Join Joyce and our Tour Director for this wonderful tour of some of the most beautiful towns in Italy (Rome, Florence for 4 nights and LuccaPisa). Take pleasure in the food, wine, entertainment, landscapes, museums and cities. Lest we forget, one afternoon is reserved for shopping.

In Memory of Bayard Plowman 1923-2011 Perseverance Loyalty Intergrity

Board of Directors 1948-2011

For more information about Horizons Club or reservations, please contact any of our branch offices or call Joyce McAdams at 573.221.6425 ext. 308

VA or FHA Home Loan?

By April Baldwin
Senior Vice President Loan Officer
Who can apply for and receive a VA Loan? What is an FHA Loan and why is it so popular?

ABA Certifications

Almost 30 million veterans and service personnel are eligible for VA financing including active duty personnel and veterans who served in active duty and were discharged under conditions other than dishonorable. In some instances, members of the Selected Reserve may be eligible. What are the advantages of a VA Loan?

This is a loan that is backed by the Federal Housing Administration. The program allows for flexible credit and lower down payments - as little as 3.5% down! And, the down payment can come in the form of a gift. What does Flexible Credit mean?

Why should I choose F&M for my mortgage?

F&M is truly a neighborhood, hometown bank. We have 10 locations across Missouri and Central Illinois. We promise quick loan decisions and personalized service that only locally owned, hometown banks can provide. We have many mortgage loan options to best suit your needs.

VA Loans are made without any down payment at all, and frequently offer lower interest rates than ordinarily available with other kinds of loans. Plus, private mortgage is not required where it is for most low or no down payment loans.

This means that the guidelines on credit are more lenient. The borrower can have less than perfect credit. If a borrower is told his/her credit score is too low for a conventional mortgage, they should look at FHA.

For more information regarding home loans with F&M Bank and Trust Company visit our website: bankfm.com or call toll free 877.221.6424 to speak to a mortgage specialist.

April Baldwin is the Senior Vice President of Branch Lending at F&M Bank and Trust Company where she has been involved in mortgage lending for over 20 years.

Under a license agreement with American Bankers Association and their subsidiary, Institute of Certified Bankers (ICB), F&M Bank was able to offer participation for 25 employees in ICBs certification program. ICB certifications are acknowledged industry-wide as the standard of excellence in financial services skills and knowledge. To earn certification, the employee must first obtain a certificate through the American Institute of Bankers (ABAs training program) by completing 1012 online courses, must have at least 6 months experience in their field, sign a Professional Code of Ethics statement, and submit a letter of reference from their manager. To maintain their certification status the employee must complete six hours of continuing education every three years. Four employees earned an ABA certificate - three Small Business Banking Certificates and one Supervisor Certificate. On May 10th nine employees took the Certified Customer Service Representative (CCSR) exam and seven employees took the Certified Bank Teller (CBT) exam. All of the sixteen who took the exams passed. The employees who completed certificates and/or passed the certification exam are: Small Business Banking Certificate: Joel Booth, Kelly Gaddis, Jeanette Poore Supervisor Certificate: Cheryl Damron CCSR: Michelle Kern, Nancy Goellner, Mandy Shortridge, Holly Copenhaver, Sydney Copenhaver, Linda Flesner, Judy Dewey, Jaclyn Givan, Donna Keiser CBT: Amy Johnson, Amber Borgmeyer, Ashley Legg, Beth Haden, Chris Mefford, Tori Lehenbauer, Cari Quinlin

For your home loan needs

stop by any of our 10 Branches & speak to a Loan Specialist!
Must be a Veteran No down payment required Low closing costs Flexible credit

VA Home Loans

FHA Home Loans

Down payment as little as 3.5% Low closing costs Flexible credit

Gorman Appointed to Residential Mortgage Board by Governor Jay Nixon

On June 3, 2011 Governor Jay Nixon announced appointments for various Missouri boards and commissions. Included in these appointments was our very own Mark Gorman. Mark was appointed to the Residential Mortgage Board. The Residential Mortgage Board approves or disapproves regulations proposed by the Commissioner of Finance with respect to mortgage brokering, hears and determines any appeal from a denial or revocation of a mortgage broker license or decision of the Commissioner pertaining to mortgage brokering.

In Memory of Michelle Marie Mickey Thiel

Senior Vice President of Mortgage Banking Operations 1955-2011

Her warm presence & friendly smile are deeply missed.

Understanding Social Security Planning

By Eric Evers, CFP and Irene Meyers, Financial Advisors with Money Concepts Financial Planning Centre at F&M Bank

Your social security benefits may be taxable depending on how much other income you earn. This includes earnings from pensions, IRAs, investment income or earned income. It even includes income earned from municipal bonds. If your adjusted gross income, along with tax-exempt interest you receive, and one-half of your combined social security benefits exceed $32,000, if you are married filing jointly, or $25,000 if you are single, then up to 50% of your benefits will be taxed. If your combined income exceeds $44,000, if married and filing jointly, or $34,000 if single, then up to 85% of your benefits will be taxed. If you are married filing separately, 85% of your benefits will be subject to income tax no matter how much other income you have. These levels were set in 1983 and have not been adjusted for inflation. Since social security benefits have increased and general income levels have risen over the last 26 years, more and more retirees have to pay taxes on 85% of their benefits. What can you do? Not a great deal. If you are approaching retirement, it might make sense to delay taking social security retirement benefits. Every year you delay will earn you delay credits.

These credits will increase your retirement benefits by 8% per year up to age 70. The 8% does not include the annual cost of living increase, which would bring the dollar amount up further. Lets look at an example: A sixty-six year old woman attains full retirement age. Since she has IRAs and pensions, she decides to wait until age 70 to collect social security benefits. If she had paid the maximum into the system, she would be entitled to a monthly social security benefit of $2,230. By waiting until age 70, that benefit would climb to $2,943 (not including annual cost of living increases). Meanwhile, she can live on her pension or IRA distributions. Some sources of income do not have the same effect on the taxation of social security benefits. Income from a reverse mortgage is one example. An immediate annuity is another. With an immediate annuity, you are receiving part principal and part interest with every payment. Only the interest portion is considered for taxation purposes. Lets look at an example: A sixty-six year old buys a five year immediate annuity for $100,000. The annuity pays out $1,750 monthly for five years. Only about 8% of that income will be included in the combined income for tax purposes. What is the right course for you? Since every person has different situations, there is no universal answer. The real key is to get professional guidance. We will give you the insight you need to make an informed decision.
All securities offered through Money Concepts Capital Corp. Member: FINRA/SIPC. Investments are not insured by the FDIC; are not deposits or other obligations of F&M Bank and Trust Company and are not guaranteed by the Bank or its affiliates; and are subject to investment risks, including possible loss of the principal invested.

Outstanding Commitment in the Banking Field

April Baldwin 23 Years

Debbie Stith 23 Years

F&Ms Wealth Management Team John Stadsvold, Irene Meyers, Karen Sutor, Debbie Stith & Eric Evers.

Becky Blickhan 23 Years

Board of Directors: Donald M. Bastian Michael Bukstein, M.D. William H. Craigmiles Tom R. Dorsey, D.V.M. Alvin (Spike) Ehrhardt Mark Gorman Charles Hickman Jack Martin Stevens Plowman Paul Richards Phillip Smith Gordon Spilker