Money Matters. From the CEO. Low-Interest Rates are Boon for Homebuyers. Winter The events of the past couple years have without question

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1 Winter 2010 From the CEO The events of the past couple years have without question been unprecedented. Steven C. Ploetz Economic challenges of a large magnitude have affected not only Sauk Prairie but everyone across the globe. The good news is that slowly but surely the U.S. economy is improving. The Bank of Prairie du Sac continues to be a strong effective engine in the financial industry. We closed 2009 with continuing and steady growth across the board. We were privileged to serve a growing number of residents in the greater Sauk Prairie area this past year. We begin 2010 with optimism and belief in our community s ability to succeed. We are pleased to support many social services and charitable organizations in our community. Their work helps make life better for all of us. We believe in the power of small business to recharge and invigorate our economy. We have been the catalyst in helping a myriad of businesses in our 90+ years of existence. With creativity, innovation and business savvy many have flourished and created jobs that help to provide a good quality of life for local families. We are an industry leader continually seeking to improve and meet the needs of our customer base. (continued, please see From the CEO, on page 2). Money Matters Low-Interest Rates are Boon for Homebuyers As expected, the Federal Reserve announced December 16 that it will continue to hold interest rates at a record low and pledged to keep them there for an extended period to keep the economic recovery going and drive down double-digit unemployment. That s good news for consumers, as mortgage rates will continue to remain at historical lows making this a very good time to buy a home. Not only are home prices low making them attractive to buyers but the federal government did extend the homebuyer tax credit through April 30, And in addition to allowing first time homebuyers to receive a tax credit up to $8,000 for the purchase of their first home, a new tax credit is also being extended to qualified existing homeowners.* Current homeowners can receive a tax credit of up to $6,500 if a new or existing home is purchased between Nov. 7, 2009 and April 30, Current homeowners must have owned and lived in the home they are selling for at least five consecutive years out of the last eight years. (continued, please see Money Matters on page 5). *Some restrictions apply. Consult your tax advisor for details.

2 From the CEO (continued from page 1) We believe that it is imperative that we continue to adapt and add services to help you succeed in the 21st Century. Whether it be expedited online bill pay or making a deposit from the comfort of your office, you can be confident the Bank of Prairie du Sac is working today and everyday to bring you the services that make your life easier. Thank you for your continuing patronage. On behalf of everyone at the Bank of Prairie du Sac, may you have a prosperous and happy new year! Sure Footing! Find the Shoe Fun for All What has two legs, a sheet of clues and loads of determination? That would have to be one of the hundreds of folks who recently participated in the Bank s Find the Shoe contest. One winner commented that his wife would say let s go and take him in their car to go find the shoe. It paid off. Weekly prizes included $100 cash to a grand prize of $700. Sure Footing is the Bank s way of reminding everyone that we are stable, strong and here to provide you with the right path to financial security. Look for more Sure Footing Fun in 2010! No purchase necessary to win. Mr. Chrisler Goes to Washington No lifeguard on duty. That is the message that Sauk Prairie High School s consumer economics teacher Joel Chrisler tries to impress upon his students as they learn the basics of managing money. I show them a cartoon which features a man lying face down after walking through a door with a steep drop off. The message is that we are each responsible for making good choices that will determine our financial futures, he says. No one but you can protect your financial future. Chrisler recently had the opportunity to learn even more about teaching youth to manage money when the Bank sponsored him to attend Jump$tart s financial literacy training for educators in Washington D.C. last November. I heard from speaker Michael B. Ruben who described how more than half of the people in the United States live paycheck to paycheck, says Joel. It reminded me of just how critical financial education is for young people. Only 59% of the young adults in Generation Y (ages 18-29) pay their bills on time every month Financial Literacy Survey of Adults, National Foundation for Credit Counseling, Inc. Jump$tart is a national coalition of organizations dedicated to improving the financial literacy of kindergarten through college-age youth by providing advocacy, research, standards and educational resources. Jump$tart strives to prepare youth for lifelong successful financial decisionmaking. Joel plans to use the information he received to reach even more students with this critical information. His consumer economics class is for juniors and seniors and is an elective, meaning it is not required. I would like to inform parents that the economics class is available, and am hoping they will encourage their children to take advantage of the opportunity to learn more about managing money. It is a key life skill no one should be without, says Joel. Pay Yourself this Tax Season. Add to or open an Individual Retirement Account with the Bank of Prairie du Sac. Your contribution may be deductible on your 2009 tax return. See your tax advisor for details.

3 Agricultural Update: Farming in 2010 The Bank of Prairie du Sac is fortunate to be the bank for so many hard working and skilled farmers. We are honored to have the opportunity to assist these families in managing their agricultural efforts. To offer some perspective and education, we are hosting an Agricultural Update on Tuesday, February 23rd at the Cedarberry Inn. We ve got a slate of knowledgeable and hands-on presenters to share some insights to help you have a better, more profitable, Scheduled topics and presenters: Managing Your Grain and Feed: Protect Your Investment Randy Shaver, UW-Madison Dairy Science The Key to Unlocking Your Marketing Toolbox Kevin Bernhardt, UW-Extension Farm Management Specialist Managing your Woodlands Mark Rickenbach, UW-Madison Forest & Wildlife Ecology What: Agricultural Update: Farming in Get Ready! Excitement Awaits in 2010 Where: Cedarberry Inn. 855 Phillips Boulevard in Sauk City When: 10:30 a.m. to 2:30 p.m., Tuesday, February 23rd Cost: Free-lunch will be served! To register, call Ask for Noel or Tommy. Judy Bartnick Retires After more than 15 years serving the people of greater Sauk Prairie at the Bank of Prairie du Sac, Judy Bartnick has announced her retirement. She credits her time working at the Bank as very enjoyable because of you. She says that working with the public has been the best part of her job. The mother of five plans to spend time with her nine grandchildren and five step-grandchildren. It is her time to relax and enjoy her family. She will, however, miss seeing the many people she has gotten to know over the years. I have made many friends, she says. Judy and Don, her husband of 43 years, live in Lodi in the Okee area. She joined the Bank after working for another bank in Sun Prairie. Judy s entire tenure at the Bank of Prairie du Sac was spent in Retail Services serving the public as a teller. Best of luck Judy and thank you for your service.

4 Recession? UW Economist gives update The Bank of Prairie du Sac presented its 4th Annual Economic Forecast on Tuesday, January 19th at the River Arts Center. UW Economist Steve Deller presented to more than 50 area business leaders emphasizing that indicators are improving and we may be entering a better era post-recession. The maybe expresses his caution in being overly optimistic. Providing nothing else goes wrong, we are on the path to recovery, explaining that most economists believe the recession has ended in the United States. Technically the recession has ended, as defined by growth in GDP. But that recovery is slow, said Dr. Deller. He shared that many sectors of the economy are showing signs of life. Even with improving indicators, however, in industries such as the automobile industry, he wanted to caution attendees from being overly optimistic. The road to recovery will be slow, he said. A challenge our country, and Madison, continues to face is higher than average unemployment. Madison is seeing unemployment rates higher than they have in the past, even during past recessions, he said. Dr. Deller explained that the final economic indicator to improve would be unemployment. Unemployment will always lag, but slowly and surely, jobs will return, he reminded the group. Recipe Corner Healthcare, Dr. Deller explained, would continue to be a growth area. He stressed the need for diversification of the economy, siting Janesville s difficulties following the recent closure of their GM plant. Reliance on any one industry is not a good plan for long term economic stability for a region. Dr. Deller was joined by Trust Point, Inc. s Vice President of Investments Randy Van Rooyen. Van Rooyen provided insight into what drives the stock market. He shared that the rebound the stock market experienced in 2009 is part of an overall cyclical pattern of growth and decline. For more information or to view their presentations, visit Submitted by Joshua Lindsey Retail Services Recipe

5 Money Matters continued from page one These tax credits may be applied to primary residences, including: single-family homes, condos, town homes and co-ops. A written binding contract to purchase the home must be in effect on April 30, 2010, but the purchaser will have until July 1, 2010 to close. Even better, the buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. If the property is sold, however, during this three-year period, the full amount of the credit will be recouped on the sale. Butch Passehl and Linda Oelke-McNamer are the Bank of Prairie du Sac s mortgage experts. They offer free prequalification for a loan and years of expertise to make your home purchase pleasurable and professional. For more information, visit or call Business Corner: Planning for the Future? Trust Point can help The Bank of Prairie du Sac works with Trust Point Inc. to offer retirement planning and trust services for our customers. Trust Point Inc. provides investment services, including mutual funds, stock and bonds.* We began working with Trust Point Inc. in 1990 to make sure our business customers had options to offer comprehensive retirement plans for their employees. The company not only helps the employers provide a 401K plan, but they also help the individual employees plan for retirement, says Steve Ploetz, president and CEO of the Bank of Prairie du Sac. Trust Point also assists people in creating and managing trusts. A trust is a legal agreement drafted by an attorney to manage the assets of an individual or an organization, according to the provisions established in the trust document. For example, as parents or other loved ones age, sometimes it is helpful to have someone manage their assets and dayto-day finances according to their wishes. A trust can make that happen. In simple terms, as trustee of the trust, we have a fiduciary duty to manage the trust assets for the benefit of the beneficiary, says Dar Isaacson, executive vice president of Trust Point. 401K management among employers is more important than ever. It is for this reason that Trust Point Inc. s services are in demand. We work directly with clients to help them make decisions in planning for their future, says Dar. The company has long been noted for the outstanding customer education and personalized service they offer each of their clients. *Trust Point Inc. offers financial and estate planning, company retirement plans, investment accounts, trusts and other financial services. The products identified are not FDIC insured, no bank guarantee, may lose value, not a deposit, not insured by any Federal Government Agency. Please call the Bank of Prairie du Sac at for more information.

6 Celebrating More Than 90 Years of Community Banking Visit Us At Prairie du Sac Office 555 Park Avenue Monday-Friday Drive Up - 8 am to 5:30 pm Lobby - 8:30 am to 4:30 pm Saturday Drive Up - 9 am to Noon Lobby - 9 am to Noon Sauk City Office 865 Phillips Boulevard Monday-Friday Drive Up - 8 am to 5:30 pm Lobby - 8:30 am to 4:30 pm Saturday Drive Up - 9 am to Noon Lobby - closed VAL 24-Hour Telephone Voice Response System address or bank@bankpds.com Web Site Mailing Address P.O. Box 130 Prairie du Sac, WI Telephone number Member FDIC BANK OF PRAIRIE DU SAC Prairie du Sac Sauk City 555 Park Avenue 865 Phillips Boulevard PRSRT STD U.S. POSTAGE PAID Permit No. 1 Prairie du Sac, WI 53578