Badgers & 2010

I attended the Champs Bowl game in Orlando which saw the Badgers beat the Hurricanes from U of Miami. It was one of the better wins I've ever seen. But it was cold! Badgers should be something special in 2010.

I do wish you the very best of happiness and good health in 2010!

Prime Rate Changes

In 2009 the prime rate did not change. It was 3.25% all year long. The last year the prime so no change was in 1993. From the end of 1962 till the end of 1966 there were no changes. By contrast, in 1982 the prime changed 38 times; 107 times from the end of 1979 to the end of 1984.

Merry Christmas

Merry Christmas. May the spirit of the season be present in your life all year long!

Edgewater

The recent opposition to the proposed Edgewater Hotel project puzzles me. As I see it, the addition of this project benefits our entire community.

Winter

This is the first winter I have had thoughts about escaping the snow and ice for warmer climes. Maybe it is because I am unable to get to my cabin and enjoy the snow rather than trying to drive in it.

Wow! This Is A Big One

Memories of growing up in the Upper Peninsula of Michigan were reignited when I got up this a.m. And my black lab sure had a problem finding a "bare" spot to do her "business!"

It is now 8:34 a.m. and three of us have arrived at the Bank. We are encouraging people to be smart and not venture out unless you are confident you won't have a travel problem.

Aloha

I'm just back from a great time in Maui, Hawaii! We were so proud of our basketball Badgers (men) as they took 3rd place in the Maui Tourney. There were 8 teams involved and we only lost to the eventual champion.

Now we wait for the "big" snow storm. What a great country we live in where one basks in 85 degrees one day and then returns to temps in 20's and snow!

Gotta love it!

Aloha II

Ooops. I'm gone for a few days to Maui for UW Men's basketball tourney and some whale watching, I hope.

Happy Thanksgiving .... and God bless America.

Aloha!

Changes in Green Bay

As a shareholder in the Green Bay Packers, I am disappointed in my investment return so far this year. The best asset I see there is Aaron Rodgers and if he doesn't start getting some protection, he won't be an asset much longer. I have tried to defend Ted Thompson, the general manager, but I am beginning to believe a change is needed.

Big Weekend

If you are a football fan, this weekend is special! First of all, you have Purdue coming to town to take on the Badgers. Purdue has won 2 games in a row; Wisconsin has lost 2 in a row. Then on Sunday at 3:15, the Packers take on the Vikings. Should be entertaining.

Welcome Back, Brent.

Well, the big game is forthcoming. Packers/Vikings next Sunday. Brent's return. Hopefully, not a triumphant one. However you weigh in on this, I think it would be classy of Packer fans to give him a nice ovation if possible. Since they don't introduce visiting players anymore, but do it as a team, he won't be introduced individually. But based on the "boos" I heard when he was featured on the jumbotron at Lambeau recently, I doubt if the classy fans will be heard.

Hope I'm wrong.

Blog

I was wondering whether to keep my blog. So I asked our iBank manager to see how many click throughs occur to my blog. And lo and behold, the number was greater than I expected. So I guess I'll keep posting to it for a while anyway.

If anyone knows of a real good source with an objective analysis of the healthcare bill recently passed by the Senate subcommittee, please e-mail it to me at rgorsuch@oakbankonline.com.

Brent Favre

I have a nice painting of Brent Favre on my office wall that is for sale.

Minnesota

I'm kind of glad I don't live along the Wisconsin - Minnesota border. Sure, it would be fine if UW and Green Bay both win this weekend. Worse case scenario? A sweep by UM and Vikings! By the way, those who have been in my office know I have a Brent Favre painting hanging on one of the walls. I have the painting up for sale and I think I have a buyer.

Go Badgers and Packers!

Federal Deposit Insurance

I was watching an early morning news show on TV this morning. A law professor was being interviewed and being asked questions relative to the FDIC insurance fund. There were a few times when the newsman referred to the fund as the "bailout fund." He also mentioned the funds were taxpayer funds. All the money in the fund is generated by assessments levied on the insured banks. None of the money is taxpayer money.

With that being said, the fund does need to be shored up. In no way is any depositor's money at risk. But banks will be asked to ante up funds to build the reserve back to appropriate levels. There have been about 100 bank failures which have caused the fund outflow to exceed the inflow.

Remember, all checking accounts and any other account where the interest yield is less than 1/2% has unlimited insurance protection. For accounts paying over 1/2% the limit is $250,000 per account. But the definition of an account is not as clear as we'd like. So if you have over $250,000 on deposit and you are in doubt, have your personal banker explain to you exactly what your coverage level is.

On Vacation

I'm on vacation. Will catch up on some things around the house and visit the north country.

Health Care Reform

I agree there is a need for reform in some aspects of our healthcare system. But I just hope we don't rely on the federal government to run it. Let the free enterprise system function! Again, I do believe some reform is needed.

Bike Ride

Wow, what a bike ride in Vermont last Saturday. Hurricane Danny and the weather front moving in from the Midwest merged early Saturday a.m. in Vermont. The 100 mile ride begain with 30 mph winds; driving rain and bad roads. Rained all day. Soaked we were 7 hours later.

But what a beautiful state! Perhaps the most beautiful I have seen.

On Vacation

I'm off to Boston in the a.m. and then to Vermont next week for my annual ride (100 miles) for Juvenile Diabetes Research. I greatly appreciate all the donations to JDRF for my ride.

See you in Sept.

Town Hall Meetings

If given the opportunity to attend a town hall meeting on the much-talked-about health care proposal from Washington, will you? Hopefully you will, if given that opp. I'm still wondering who has really read the proposal; who understands it; and who can we trust?

Jets for Congress

Can you believe Congress has approved $550 million for new jets to transport them and other government officials around? And these were the same people criticizing corporate execs for using private aircraft. Wow!

Healthcare

Does anyone really understand the proposed federal healthcare overhaul? Has anyone read the detail? Who do we believe in this debate?

What We Are Seeing

For the first 8 years of our bank's life, we had no delinquent home mortgage loans. Now we have a few and even one foreclosure! But these concerns pale in comparison to other parts of the country. But I do sense we are at or near the bottom of this recession. I only hope some horrific event does not set us back.

Radio Talk Show Hosts

I like to listen to various radio talk shows. The hosts vary in creditability. And when someone disagrees with them, they often get down right disrespectful. Recent talk show hosts Henck and McKenna of WIBA AM are two I often listen to. When Henck is disagreed with, he is respectful and thanks you for listening and calling in or e-mailing him. On the other hand, Ms. McKenna lacks the class that Henck shows. I feel people like her that seem to represent the opposite ends of the political spectrum cause more problems than they'll ever solve. But one must be careful not to pick fights with people who buy their ink by the barrell.

Don't Be A Victim of Vishing

By now most of us have become programmed to ignore the e-mail messages we receive from foreign princes promising to send us thousands of dollars in return for doing a simple favor. These types of scams have been around for years and are a form of "phishing"; criminals trick people into handing over their bank account number, credit card info, social security number or other valuable data using malicious e-mails or Web sites pretending to belong to banks or online auction services.

But a similar, though less well-known type of scam - "vishing" - is becoming more prevalent.

Voice phISHING, also called "VoIP phishing" is the telephone equivalent to phishing. Vishing is a scam using voice over IP to gain access to a victim's personal information.

Typically, victims receive a call from a recorded voice informing them that their bank account is frozen and also provides a toll-free number to utilize to reinstate the account. When you call that number, you will be asked to verify your personal information. Once you do that, you have provided the criminals with the data they need to steal money from your bank account, or steal your identity. And in the last couple of years vishing attacks have seemed to occur most often over a holiday when the bank is closed and there is no easy way to confirm the validity of the call.

Consumers need to be wary of such calls. If you receive such a call, you should:

.... STOP. Do not respond immediately. It is always best to be cautious and slow to respond.

.... THINK about why your bank would be asking for this information. Remember, no legitimate business would request a customer to verify personal information such as PINs, bank account numbers or SSNs over the phone unless you initiated the contact with the institution using a phone number obtained from the phone book or a bank statement.

.... CALL your bank directly the next business day they are open, and call local law enforcement to report the scam.

Criminals are constantly inventing new techniques or variations on old ones to steal personal information. If you are ever in doubt about a request, immediately contact the police and your financial institution. Both are well equipped to determine the legitimacy of the request and will be happy to offer assistance.

A Day for Remembering

Here we are on the eve of another one of those days that most Americans only see as a day to play. It is too bad all cannot tour the historic battlefields along our east coast; or walk the freedom trail in Boston. Such reminders of the sacrifices so many made for our freedom! The freedom we take for granted.

God bless America! Travel safely.

Hyper-Inflation

I listened to an interview with Governor Tommy Thompson this a.m. on WIBA. During the interview he expressed concern about the unbelievable spending going on right now at the federal level. He predicts inflation levels that might surpass what we saw during the Carter administration in the late 70's - early 80's. I concur. Those who feel this massive spending was necessary to turn the economy around are likely to regret that we didn't take our lumps now and reap the benefits later. As it is, Katy bar the door in a few years, I'm afraid.

Financial Reform

The proposed financial regulatory reform offered by the Obama administration is, as might be expected, good and bad.

The good: requires greater capital requirements for the very large banks that pose systemic risk to our financial system. There are about 19 banks that fit into this category. Also good are some other aspects that put some of the same requirements on the large banks as currently being enforced on smaller banks.

The bad: Creation of new agencies which will do exactly what current agencies should be doing. Why not clean out the management of those existing agencies and require them to do what they should have been doing all along?

Wisconsin Budget

I get the feeling that when all is said and done, the actions of our federal, state and local governments as relates to the current economic environment will take years and years to undo.

Brewers Still In First!

I have high hopes for our Brewers this year. I still think they will pick up another starting pitcher before the end of July. Jake Peavey in San Diego must be high on their list.

Occasionally I have extra Brewer tickets. So if you have an interest, let me know. Good seats - four of them and parking.

Government Is Too Involved

I am somewhat disturbed by an attitude that seems to be gaining acceptance in our American culture. Throughout most of my life it seems good things have happened because the citizens of this great country get involved and make them happen. But it seems more and more people feel things will happen only if the government somehow makes them happen. In my opinion, this will lead to mediocrity rather than excellence.

Too much government, in my opinion.

Remember

This is the weekend we all should pause and thank God for all the heroes in years past who have made it possible for us to live here in the greatest country in the world! As bankers we often see businesses owned by second and third generation family members fail. Why? In my opinion, these second and third generation members have no idea of the sweat and sacrifice made by their fathers, mothers and grandparents to make the business succeed. They lose sight of what it really takes.

I pray Americans are not like these second and third generation business people.

Honesty

Business people come in all sizes, shapes and colors! It is especially rewarding to have as associates people who can be open and honest with you. Sometimes we can get defensive, and even hurt, by honest expressions of opinion and advice. But, in the long run, people who are honest with you are the best people to be associated with. And they don't mean to offend or hurt you.

What A Beauty!

As I look out my window and see people jogging; bikers biking; ducks doing whatever they do this time of year in the pond; the bright sun; predicted high temp of 75.... how can one not be awed by the power of nature on our moods!

Annual Meeting

Last night was our 9th annual shareholders' meeting. It is held each year in the Promega Building in the Fitchburg Research Park. If you have not driven down East Cheryl Drive recently, you should. And go from Fish Hatch all the way to Syene Road. You'll not only see a couple new buildings with retail shops along the drive, but you'll also see the wonderful expansion that has taken place at HospiceCare.

Each Day Gets Better

Most of you know I had knee surgery after a fall on the ice in January. Yesterday was a great day for me in that I was able to ride my bike about a mile - albeit a slow ride around the circle at the housing complex where we live. But nevertheless, a big step in my rehab. So many times we take our health for granted, don't we?

Book Recommendation

I am currently reading "Caught in the Middle." It is a book about how the economy of the Midwest is changing. It is kind of a depressing book as the author doesn't hold out much hope for our smaller communities, especially those more than 50 miles away from a Madison, Chicago or DesMoines. It does hold out Madison as being an economy that has adjusted from relying primarily on manufacturing and agriculture to biotech, research, etc. The book argues that the Madisons of the Midwest will survive and prosper. But it doesn't offer much hope for those communities are not bedroom communities of prospering cities.

Worth a read.

Another Yuk!

Yuk! Weather is ugly today but you got to admit... we always have something to look forward to... nice weather!

Interesting article in the Wi St Journal this a.m. on the effort by Good Times owner Chris Peterson to create a reality show. Check it out and stay tuned.

Up and Down

Well, the Dow Jones is up over 8,000 again. Did it bottom out a month ago? Opinions vary. But my stance these days is to buy cautiously but don't bail out of current "good" companies. And there are "glimmers of hope" as President Obama says.

Refinance

I probably don't need remind anyone that interest rates are very low right now. If you have a home loan and your rate is greater than 5.50%, it probably makes sense for you to consider refinancing. Go to our web site, www.oakbankonline.com and see how you can calculate what your new payment would be at the current rates. Then you divide the savings into the new costs of approximately $1,200. That gives you the number of months before you break even.

Final Four

Would have been nice if Michigan State could have beat North Carolina. Watching North Carolina's talent makes me realize that Wisconsin is a ways off from winning a national championship. Wisconsin fans are happy being second best, I guess.

Dane County Trips

Back in 1996 then County Exec Rick Phelps wrote a number of articles on Dane County day trips which are off the beaten path. If you would like a copy of the six articles, send me an e-mail to rgorsuch@oakbankonline.com.

NCAA Tourney

Four of my teams are already out in NCAA tourney!

Government As A Partner

Iberia Bank is a large bank in the South. They were one of the recipients of the financial rescue funds from the federal government. They really didn't need the funds and now that the public seems to perceive that the banks who take the funds have a problem or two, Iberia is wanting to return the funds to Washington. I think we'll see more of this.

Use of a Debit Card

I really like using my debit card. I use it more than any other card in my wallet. When asked whether "debit or credit", I always say "credit". Seems to eliminate the need for a password. One thing to remember: bring your receipt home or back to the office and be sure to enter the transaction in your checkbook.

Bailout?

I am a little sensitive about how everyone refers to the so-called bank bailout as some sort of government grant to Banks. Keep in mind that the federal government is getting Preferred Stock in return for the funds distributed to the banks. As such, the government will be paid dividends, and eventually, get all principal repaid. Where else in government are we seeing a return on our investments?

Bailout?

Retirement

Hindsight is everything! As I look back over a lifetime of blessings, I wonder what I would have done differently. One think that pops out is preparing for retirement. Does one who is under 40 ever think they will retire? If I had it to do over I would have disciplined myself earlier in life to save and invest. A dollar invested today will produce more retirement income than two dollars invested 10 years from now. In other words, don't put off till tomorrow what you could do a little bit of today!

Financial Advice (Continued)

As difficult as it can be, I recommend that all young professionals build a cash-like reserve equal to three to six months of their annual income. This can be a savings or money market account, or short term (less than 1 year) certificates of deposit. This is a reserve to be drawn upon in the event of an emergency, like a loss of a job. Again, it takes personal sacrifice to do this, but it is wise. In fact, all of us should have such a reserve.

Budgeting Advice

If I was giving financial advice to an 18 year old about to enter college, it would be this. Get thru school without incurring any student loan debt or do not put anything on a credit card that you do not pay off each month when you receive your statement. "Well, how do I get thru school? My folks are not rich." Work, my young son or daughter, work. It may take longer to get thru school, but when you get out, no debt!!!

We continually see young people start their working careers with significant debt. It puts pressure on them for years, in many cases.

Old Fashioned Budgeting

I recall how we used to do our household budgeting when we were first married some 47 years ago. My wife set up an envelope for all our expenditures. On the outside she would write the amount that we would put into the envelope (in cash) from each payday. Of course, the amount on the envelope multiplied times the number of paydays would equal the future payment need for that budgeted expenditure. This way, the money was always there to meet expenses.

Old fashioned, but it worked when dollars were limited!

Watch Out For the Black Ice

It's been a while. On Jan 22 I slipped on ice in Evansville, rupturing my quad tendon in the left leg. It pulled off the knee cap, necessitating surgery on Jan 27. The surgeon feels things went well. I plan to be on my bike in 75 days!

Slipped on the Ice

As we all know these are treacherous times to be walking out of doors. Ice can become a problem at the most unexpected time. Well, I found out last Thursday just how dangerous the ice can be. While walking to the gym in Evansville for a granddaughter's basketball game, I all of a sudden found myself writhing on the ground in pain. I knew I had done something pretty bad to my left knee.

Unable to get up by myself, someone eventually came along and helped me up. Fortunately my wife was already in the gym. She drove me to the St. Mary's Emergency Room where I was diagnosed with a ruptured quad tendon. Tomorrow I have surgery to reattach it.

So I may be absent for a few days. I"m looking forward to the surgery so I can start to get back to normal.

Take care.

A New Era

Regardless of how I voted last November, I have been pleased so far with President Obama's appointees and how he is addressing the pressing issues. Sure, no one is perfect. But overall, I think the nation has a bit of renewed enthusisam and optimism about the future. That is good!

Economy in 2009

I had the opportunity yesterday to hear Dr. Evans, president of the Federal Reserve Bank of Chicago speak on the economy and his outlook for 2009 and 2010. He left no doubt that he thinks 2009 and early 2010 will see more unemployment nationally. He does feel we may see some improvement in latter 2009, but it will be a slow process to get us back to a normal level.

Brrrr!

Being a Yooper I think I know what it takes to keep warm in severe cold weather. If I didn't, I probably would be be a frozen statistic up there.

Wearing wool clothing cannot be over emphasized. And footwear that keeps your feet dry. And then a good hat with cover for your ears. A scarf wrapped around the neck keeps the wind out.

I also think its a good idea to keep your car's gas tank full. Each time you fill up, add a bottle of gas d-icer to keep your fuel line from freezing up. The fuel line can freeze even when the car is on the road if you don't take these precautions.

Remember your pets safety when you have to take them out!

Enjoy!

Stock Price

We recently had an evaluation done on our holding company stock. Keep in mind that the Bank is a subsidiary of Oak Financial, Inc., the holding company. The evaluation was done by the accounting firm WIPFLI. Their formula for arriving at the value is book value of stock multiplied by 150% (normal premium paid by an acquirer for control of a community bank) less a discount of 25% due to lack of marketability for the stock and because most transactions would involve minority stock interests.

Got it?