Frandsen Quarterly Q1
How to Identify Phishing Email How to Avoid Debit and Credit Card Fraud Attempts Budgeting for Savings Contributions
VOLUME 1
EVERYTHING LOCAL. EVERYTHING EASIER. FrandsenBank.com
Contents
4
Corporate Profile
6
How to Identify Phishing Email
8
How to Spot a Fake Website When Shopping Online
10
Avoid Public Wi-Fi Connections
12 How to Avoid Debit and Credit Card Fraud Attempts
14 Budgeting for Savings Contributions
Real People. Real Results.
3
Corporate Profile: Year End 2022 37 locations
ABOUT FRANDSEN BANK & TRUST Frandsen Bank & Trust was founded in 1982 with the purchase of one bank by entrepreneur Dennis Frandsen. Today, Frandsen has 37 bank locations in Minnesota, Wisconsin, and North Dakota communities.
in three states!
Our community-focused, business-savvy bankers are committed to determining needs, developing relationships, and delivering solutions for businesses of any size. We offer the perfect mix of outstanding personal service and high-tech banking features. Our customers have told us that we are big enough to meet all their needs but small enough to care. We believe that says it all.
Oslo
Ely Tower
Warren East Grand Forks Grand Forks Ada
WE OFFER A FULL RANGE OF BANKING SERVICES
Virginia
Hermantown
• Business and Ag lending, including SBA and Farmer Mac • Commercial and farm real estate lending • Full suite of treasury management products • Online banking, remote deposit, ACH, and Positive Pay • Credit/debit card and electronic payment processing • Business and consumer mobile banking and deposits • Consumer banking services • Residential real estate lending • Wealth Management & Trust services (not FDIC insured • may lose value • no bank guarantee) • Plus, many more personal and business banking services
Cloquet
Crosslake
Duluth
Baxter
Clinton
Foley
Pine City Braham
Hayward
Luck
Forest Lake Vadnais Heights Eau Claire Hector Bird Island Jordan Apple Valley Lakeville Fairfax Montgomery Lonsdale Dundas New Ulm Zumbrota North Mankato Waterville Pine Island Mankato
FINANCIAL INFORMATION Financial information* (in thousands)
12.31.22
Total assets
$3,163,117
Total deposits
2,786,665
Gross loans and leases
2,084,802
Total equity capital
262,212
Tier 1 capital
228,205
Total regulatory capital
252,772
LOAN DISTRIBUTION TOTAL $2.08 BILLION
COMMERCIAL/ INDUSTRIAL LOANS $913 million
PERSONAL AND OTHER LOANS $154 million
(AS OF 12/31/22) FARM LOANS $278 million
RESIDENTIAL REAL ESTATE LOANS $740 million
*The information presented in the table is unaudited.
Frandsen Bank & Trust is owned by
Real People. Real Results. frandsencorporation.com
frandsenbank.com | Member FDIC CA020723
The Dennis Frandsen Story Dennis Frandsen has been an entrepreneur his whole life. He grew up on a small dairy farm in Luck, Wisconsin, and attended a country schoolhouse. As a child, he sold cucumbers to the Gedney Pickle Company; the first check he received was for $3.57. In his teens, he earned money by cutting logs on the family farm and selling them to a yo-yo factory in Luck. After finishing high school in 1951, Dennis decided he could earn more money logging than going to work for someone else. He already owned the requisite chain saw and invested in a truck. Frandsen contracted with neighbors to harvest their trees when the family farm was out of logs.
In 1953, at 19, Frandsen heard of 200 acres of virgin timber for sale in Rush City, Minnesota. He hopped on a plane (for the first time in his life) and traveled to Chicago to drop in—with no appointment— on the owner. He emerged with an agreement to purchase the land for $13,000—not that he had anywhere near the capital to fund the deal. Now doing business at Frandsen Lumber Company, Dennis applied for a loan at his local bank in Luck. Upon being turned down, he walked out of the bank and vowed that someday he would own that bank. A bank in Rush City similarly turned him down. But as he drove home after the second try, he stopped at the bank in Grantsburg, Wisconsin, where he met a kindred spirit, banker Walter Jensen. And Jensen decided to fund the lumber venture. Frandsen paid off the note in five months, with half the timber still unharvested—resulting in a very healthy profit on the lumber. When that was sold, he converted the land into another profit level. Dennis relocated to Rush City, where he met his wife, Jeanette. He then purchased land for a home on Rush Lake, started a family, turned the excess land into lakeshore lots, and sold them at a profit. In 1963 Frandsen once again turned to Jensen to finance his purchase of Plastech Corporation, which today sells $50 million a year in plastic parts and is a component of Frandsen Corporation, a holding company that provides support to his many enterprises.
From the late 1960s through the 1980s, Dennis bought and developed thousands of acres of land in east central Minnesota. He subdivided the land into smaller parcels, built roads and cabins, sold them as recreational properties—and netted several million dollars. In 1981, serendipity put Frandsen in touch with another banker friend who informed him that his hometown bank in Luck was for sale—the bank that turned him down for his first loan. Dennis bought that bank and started Frandsen Financial Corporation, a bank holding company, now with over 30 locations across three states. And there’s more. Still the farm boy at heart, Frandsen purchased Miller Manufacturing in 1996. Through expansion and acquisitions, the company has grown to become the world’s top supplier of livestock prods and a leading producer of Americanmade farm, ranch, and pet supplies. Miller’s product line today includes about 1,000 products. Three years later, Dennis and his son Greg purchased Industrial Netting, now the world’s largest custom fabricator and distributor of plastic netting and mesh. Now, over 70 years after launching his business career, Dennis still isn’t finished. He has surrounded himself with a group of talented business people who are charged with running his companies with the same entrepreneurial spirit. Frandsen entities have a reputation for honesty, fairness, and accountability. Dennis’s unique management style holds senior management accountable but allows them the freedom to run the businesses. That style has earned him recognition as one of Minnesota’s leading entrepreneurs. Frandsen’s uniqueness stands out as his organization grows through expansion and acquisition. He believes well-run enterprises can benefit employees, shareholders, communities, and clientele. Employees and customers in over 40 communities in the Upper Midwest continue to benefit from that philosophy. Recent examples of such benefits include Frandsen’s offer of full two-year scholarships to technical college for every graduate of the high schools in Braham, Pine City, and Rush City, Minnesota, and Frederic and Luck, Wisconsin; donations of drones and AEDs to law enforcement in several counties; and significant donations to Lakes Region EMS ambulance service FOUNDER AND CHAIRMAN OF THE BOARD, . and Mayo FRANDSEN FINANCIAL CORPORATION . Clinic.
How to Identify Phishing Emails Phishing (fishing) is another form of an online scam that
Warning signs (call to action):
is executed by the spread of emails to consumers. The
The content of phishing emails will prompt the
sender of the email will pretend to be from a well-known
user to take immediate action regarding personal
source. Phishing emails are also known as social
account information. Urgent calls to action are
engineering attacks. What is a social engineering
implemented to get the consumer to act out of impulse.
attack? Designed to manipulate consumers into providing sensitive information for financial gain.
“Click Here” campaigns will direct the recipient to navigate an external link. The content may state, “Log
Email addresses:
in to verify suspicious activity on your account.” At this
Scammers will develop email addresses that are
point, the consumer will be prompted to insert login
similar
example,
information. The scammer records the data to change
CustomerService@HomeDepot.com might be changed
passwords, phone numbers, and emails to block the
to
consumer’s access to the account.
to
the
legitimate
source.
For
Cust0merService@H0meDep0t.c0m.
Practice
examining email addresses before communicating with the sender, even when expecting an email from family,
“Upload” requests can expose more damaging
friends, coworkers, or businesses.
information. One of the most routine “upload” requests is when the scammer acts on behalf of the Internal Revenue Service (IRS). The message may include, “The IRS is now accepting tax returns; attach your W-2
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Frandsen Quarterly | Quarter 1 2023 | FrandsenBank.com
form so we can proceed with this year’s tax filing.” W-2
transfers, reloadable cards, and money transfer apps.”
tax forms produce access to the filer’s name, social
Acclaimed businesses will not threaten consumers, nor
security number, and address. In addition, the phishing
will their communications contain spelling errors and
email can request banking information for the IRS to
poor grammar.
distribute tax refunds to the corresponding account(s). The IRS phishing email can increase the consumer’s
Reporting phishing emails:
chances of identity theft.
Cybercriminals make navigating emails substantially more difficult with phishing. The Federal Trade
Generic greetings:
Commission (FTC) accepts reports of potential phishing
Phishing emails have common characteristics that
attempts at ReportFraud.ftc.gov. Phishing emails can
should draw immediate warning signs to the consumer’s
also be forwarded to reportphishing@apwg.org.
attention. For example, the email will include generic greetings such as “Dear sir,” Dear Madam,” “Dear
Unfortunately, phishing emails are here to stay.
account holder,” “Dear customer,” and “Dear valued
Consumers must be able to identify the warning signs
customer.”
and question the source’s validity before taking the appropriate course of action. Do not click on external
Unprofessional behavior:
links or provide sensitive information that a third-party
The email might contain threats to persuade the recipient
source can use for financial gain. When social security
to act out of emotion. The message may read: “Dear
numbers, credit cards, or other non-public personal
valued customer, if overdue account balances are not
information has been compromised, visit identityTheft.
paid, we will have no choice but to have you arrested.
gov and navigate the webpage based on the provided
The issue can be resolved by sending gift cards, wire
information.
Know When Your Bank Is Calling! If the Frandsen Fraud Detection team suspects fraud on your account, it’s important you take the call or text. Please add these important numbers to your phone’s contacts to ensure you don’t miss a call:
INCOMING PHONE NUMBERS
833.735.1891 • 833.735.1897
INCOMING TEXT
37268
IF YOU MISS A FRAUD ALERT CALL FROM ONE OF THE NUMBERS ABOVE, CALL
833.735.1891
Where to Call for Assistance
E-BANKING CUSTOMER SERVICE
877.213.5172
TO ACTIVATE YOUR DEBIT CARD OR RESET PIN
800.992.3808
BILL PAY CUSTOMER SERVICE
855.485.4053
LOST/STOLEN CARD
855.942.4248 Real People. Real Results.
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How to Spot Fake Websites When Shopping Online Protect your online experiences with Frandsen Bank’s tips on how to spot fake websites.
Domain Names:
Users can verify security by locating the search bar’s
Scammers will revise the domain names of companies
lock icon next to the domain name. The icon tells the
in an attempt to pass the perception of legitimacy.
user that the connection between the web browser and
For example, HomeDepot.com might be modified to
the device is encrypted.
H0meDep0t.com by replacing the letter o’s with zeros. Spelling Errors: After analyzing the domain name for inaccuracies, turn
Confusing and inaccurate spelling can be the first
your attention toward the front of the domain name.
sign that a website might be fake. Read the text on the
Does the website have HTTPS or HTTP? Hypertext
webpage to identify significant language and spelling
Transfer Protocol Secure (HTTPS) is an extension that
errors.
tells the navigator that the website uses encryption to protect sensitive information within the web application.
WE ME A N BUSINESS
Our Experienced Bankers Are Ready To Help 8
Frandsen Quarterly | Quarter 1 2023 | FrandsenBank.com
Graphics:
suspicious website, scroll down to the footer and locate
Analyze the quality of graphics on the webpage.
the privacy policy. If the field is not easily accessible, it
Images on fake websites are low-quality uploads from
might signify an illegitimate company.
the Internet. Companies contribute a significant amount of money to make their websites look professional.
Reviews: For users still uncertain, Google reviews can be an
Web Design:
effective tool. Additional research into the experience of
Scammers tend to piece together quick websites with
other customers can help reveal unidentified concerns.
coding errors and uncreative designs. If the website is not user-friendly and fields do not load properly, it could
Reporting:
be a fair assumption that the website might be fake.
When you become aware of fake websites, report the scam(s) to the Federal Trade Commission
Discounts:
(FTC), Internet Crime Complaint Center (IC3), and
Online shopping has created large audiences of internet
EConsumer.gov.
shoppers searching for better deals at retail stores. Scammers will advertise significantly discounted prices
What do these agencies do? The Federal Trade
to attract consumers to their websites. If the price
Commission can’t resolve fraudulent transactions
seems too good to be true, it probably is.
on fake websites, but the agency shares the report with all levels of law enforcement. Furthermore, the
Payment Methods: Fake websites will attempt to
FTC can guide you toward the next steps. The IC3
use payment methods such as Venmo, Cash App,
will send federal, state, and local law enforcement
PayPal, or even direct bank transfers. Websites must
reports to inform the agencies of internet-related
follow specific regulations, including clear terms and
crimes. EConsumer.gov handle reports involving online
conditions, an imprint of company contact information,
shopping and e-commerce transactions with foreign
encrypted checkouts using HTTPS connections, and
companies.
finalized payment details. Frandsen Bank & Trust wants its customers to have safe Privacy Policy:
online shopping experiences. If you believe personal
Scammers generally forgo providing a website privacy
banking information has been compromised on a fake
policy section. This process informs the consumer
website, contact the Frandsen fraud department to
about how the business plans to protect and disperse
begin the dispute at 877.253.8964.
personal information. While navigating a potentially
BRIAN BRAKKE
MARILEE JAGER
LAKEVILLE | 952.469.2265
SAM ZANTO
APPLE VALLEY | 952.469.9200 Real People. Real Results.
9
Avoid Public Wi-Fi Connections Public Wi-Fi connections can sometimes be the only
What does this mean? This means all the information
option for users looking to gain access to the internet
your device sends is delivered to the hacker, then
on the go. Frandsen Bank wants to warn you about the
relayed to the Wi-Fi connection.
risks of joining public connections and how to prevent sensitive information from being compromised.
Preventatives: Public Wi-Fi connections are often used to reduce
Public Wi-Fi Warning:
overage charges on data, but at what cost? Unlimited
The biggest threat to users when connecting to a public
data plans can cost more, but they can protect users
Wi-Fi connection is the lack of encryption for sensitive
from potential data breaches.
data. Avoid accessing identifiable information such as emails, phone numbers, social security numbers,
Virtual private networks (VPN) allow the user to create a
banking information, business data, and addresses
secure connection between you and the internet. A VPN
that hackers could use for financial gain. In addition,
is the safest option for individuals conducting business
unsecured networks provide opportunities for hackers
in public places. The extra layer of security will protect
to place themselves between the user and the network
identifiable information from being exposed.
connection. This is called a man-in-the-middle attack. Wireless settings on smartphones, tablets, and laptops can be programmed to auto-connect to accessible
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Frandsen Quarterly | Quarter 1 2023 | FrandsenBank.com
Wi-Fi networks. If your device is connecting without
installed immediately after release to ensure the device
verification, access your device settings and disable
is equipped with the most current software. Security
auto-connections.
issues often present themselves when software updates are not installed.
File sharing on public Wi-Fi networks is never a good idea. Personal information can be obtained if the
Public Wi-Fi Warnings and preventatives are outlined
file is intercepted. Users should turn off file sharing
to help guide our customers towards making the
capabilities when connected to public networks,
right security decisions with public networks. If you
especially if the sender is not using a VPN.
have recently used public Wi-Fi and suspect personal banking data has been compromised, contact your
Software updates can help prevent attacks on your
local Frandsen Bank & Trust to help validate your
mobile device. Patches and system updates should be
concerns.
Business Finance Experts GET THE BANKING RELATIONSHIP YOUR BUSINESS DESERVES > > > >
Remote deposit and mobile deposit ACH and wire services Affordable merchant card processing SBA and conventional business loans
Home Mortgages LOW RATES AND NO HASSLE > > > >
Low and no down payment options First-time buyers welcome Cabins, lakeshore, and land Buy, build, or refinance NMLS 718070
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How to Avoid Debit and Credit Card Fraud Attempts Protect your debit and credit card information from fraud attempts.
How it works:
phone calls might encourage an individual to input card
Scammers will use automated texts, phone calls, or
information through automated services.
emails to contact consumers regarding debit and credit
When this happens, disconnect the call and contact
card information. Topics can include reactivating cards,
your respective banker at a trusted phone number.
paying overdue account balances, and confirming unusual activity on the card. Most of the time, the messages will contain urgent calls to action. For example, “Click here to verify unusual activity on
What if I provided account details?
your account.” Or “Enter your PIN to reactivate your
Contact the bank’s fraud department immediately if
card.”
you suspect your information has been compromised. Intercepted accounts can be resolved when the bank is
What to avoid:
notified promptly.
Banks will not request personal account information through unsolicited text, email, or phone calls. Do
Are there any safeguards?
not click on links provided in texts or emails from
Monitor
unknown sources. Links can redirect the consumer
Customers can also enroll in fraud protection services.
to a fraudulent website that looks similar to the actual
Bank alerts will send notifications regarding card activity
banks. Frequently, it will prompt users to input personal
through text, phone calls, or email.
information such as checking and routing number, social security number, and date of birth. Furthermore, 12
Frandsen Quarterly | Quarter 1 2023 | FrandsenBank.com
accounts
for
unauthorized
transactions.
Farmer Mac Approved Lender
Member FDIC
WE OFFER:
• Local decision making • Competitive rates, reasonable fees • Conventional and Farmer Mac loan programs • Underwriting policies tailored for farms, ag businesses, and the self-employed Magazine Title
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13
Budgeting for Savings Contributions Financial stability begins with appropriately allocating funds. Frandsen Bank has provided a guide to help expand savings contributions.
Calculate Income:
bills, utilities, car payments, car insurance, medical
Calculate all sources of income to understand how much
expenses, entertainment, eating out, and miscellaneous
money will be available before financial obligations are
expenses. These will be divided into fixed and variable
paid. Make sure you are recording the net pay and not
expenses.
the gross pay. What are fixed expenses? Fixed expenses are things What is net pay? Net pay is the amount given after
that will stay the same on a month-to-month basis. Rent
taxes and deductions, known as “take-home pay.”
and car payments are excellent examples of this.
What is gross pay? Gross pay is the amount made
What are variable expenses? Variable expenses
before taxes and additional deductions such as health
are things that can change. Utilities, entertainment,
care, dental, vision, 401K, etc.
groceries, and eating out are typical examples of this.
Evaluate Expenses:
Subscriptions: Netflix, Hulu, Disney+, and Peacock
All monthly expenses must be accounted for to depict
are streaming services that tend to be underutilized.
someone’s financial picture accurately. Make a list
Eliminate subscriptions based on usage and monthly
of all monthly responsibilities such as rent, phone
cost.
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Frandsen Quarterly | Quarter 1 2023 | FrandsenBank.com
Food:
when a $2,500 average monthly ledger balance is
Eating out numerous times a week can break the efforts
maintained, and a $3 limit fee for each withdrawal,
of remaining within budget confines. Identify occasions
transfer, and payment exceeding six per monthly
where eating out is justifiable and consider this a
statement cycle.
fixed expense. When creating a budget plan, grocery shopping for household necessities should remain a priority. Execution: The execution involves taking the remaining funds and deciding how much to allocate toward a savings account. For instance, imagine someone’s monthly net pay totaling $3,400 and expenses $2,230. After subtracting the two variables, the total comes out to $1,170. How much should we be contributing to the savings account? The process is dependent on the goals of the budget. Do you want to save for a house, car, college, or retirement? With $1,170 remaining after financial obligations are satisfied, it would be recommended to set aside at least 50%. How can I transfer the money to a savings account?
BUY. BUILD. REFINANCE. Need Financing?
Direct deposits enable the ability to allocate paycheck percentages to savings accounts. The feature can help prevent disparities in contributions by designating an exact portion each pay period. Mobile and online banking apps are also an option for conveniently
Find a lender near you at frandsenbank.com/locations
transferring funds between accounts. Accessibility: Avoid depositing saving funds into accounts that charge money to access. Consider depositing the funds into a different account, separate from everyday spending. Accessibility is important, but remember to incorporate safeguards to repress unnecessary expenditures. Consider opening an account that earns you interest on your money, such as a Frandsen Bank & Trust Money Market account. Benefits include tiered interest, free eStatements, a $10 monthly maintenance fee waived
NMLS 718070
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Frandsen Bank & Trust Careers ...more than just a Banker! Frandsen Bank & Trust is a diverse and inclusive organization with a shared vision to create success in the lives of our customers, communities, and employees.
Core Values • Provide Superior Customer Service • Communication Effectively and Respectfully • Develop and Reward Employees for Exceeding Expectations • Support our Communities
• Manage Risk and Capital to Assure a Strong Organization • Promote Pride in the Frandsen Community Banking Organization
Career Paths Frandsen Bank & Trust has a vast array of job opportunities to explore.
Ebanking
Information Security
Business and Consumer Lending
Human Resources
Consumer Loan Operations
Credit Analyst
Marketing
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