Quarterly News APRIL | 2011 & I N F O R M AT I O N Galena State Bank proudly adds GenGold® to personal banking services You and your family will save like never before with GenGold,® a benefits-packed program that offers real savings on products and services you use every day. Dream vacations become reality, grocery bills go down, prescriptions become affordable, even telephone calls are discounted. Available to all GSB personal checking account customers for a low monthly fee of $5.50, GenGold® provides discounts of up to 70 percent from over 400 participating local and national merchants. “Our mission is to help each and every customer live better for less by delivering extraordinary value,” said President and CEO Drew Townsend. “We are always looking for ways to add value to the financial tools our customers already have.” 90 DAYS FREE! Call us today at 815.777.0663 or go to www.gengold.com to learn more and start saving today! GenGold® offers more than 60 benefits and services including: SAVE ON FAMILY FUN • Movie ticket discounts • Blockbuster discounts • Dinner and a movie ENJOY NATIONAL RETAIL AND INTERNET DISCOUNTS • Discounts and savings at major retailers, including the Gap, Old Navy, Macy’s, Jos. A. Bank and more! EXPLORE FULL-SERVICE TRAVEL BENEFITS • Savings on air travel • Cruise discounts • Group and tour events • Vacation specials • Discounts on theme parks, major attractions and ski- lift tickets BUY FOOD FOR LESS • Sam’s Club® discount • Save up to $1,000 annually on grocery bills • Easy on-line enrollment and access to coupon inventory • National restaurant discounts • No clipping coupons or searching through the paper Galena State Bank has selected GenGold®, Inc., a fully independent third-party service provider, to provide travel and other discounted services on an exclusive basis directly to GenGold® members. Galena State Bank assumes no liability for any of the providers in fulfilling their services. All liabilities, claims, damages and demands are the direct responsibility of GenGold®, Inc., the benefit provider. Discounts received through GenGold® may not be used in conjunction with any other financial institution discounts. Not all services are available in all areas. Benefits and services are subject to change without notice. Call 1-800-428-6686 for complete program restrictions and details. Historic par Minnie Whitham didn’t know she was making history; she thought she was preserving it. Actually, she was doing both. Whitham was a founder of the Galena Historical Society in 1938, along with other preservation-minded folks with notable Galena names like Heer, Hobbs, Sheehan, Westwick and Weber. Although Galena State Bank was not in business in 1938, it has been a solid contributor to the communities it has served since it was founded in 1967. Recognizing the importance of history to Galena, GSB has been a strong supporter of the historical society in many ways. In addition to being a lifetime member, the bank has contributed to capital projects like a new roof and a lead-mine exhibit. Since 1985 it has been the exclusive sponsor of the Winter Program Series, four educational presentations of historical interest held during the months of January through April. PAGE 2 / 3 815.777.0663 tnership In 2009, GSB contributed to the hiring of a professional firm to create a master business plan for the historical society museum, an investment which strengthened the society’s organization and solidified its vision. Last year, GSB provided financial support to the society’s Pass It On Sustainability Campaign. The donation supports the Historical Research Center, a public-access software which details the society’s artifacts by description and photo. GSB also shows its backing of the historical society by providing a meeting space for the society’s monthly board meeting, as the current museum location is lacking in meeting space and parking. At times, GSB employees have served on the society board, until recently holding the vital position of treasurer for about a decade. Recently, GSB entered into a lease agreement with the historical society to create a “Gateway to History” in the bank’s former drive-thru facility on Main Street. “History is a major motivator for visitation and quality of life in Galena and Jo Daviess County; however, we agree with the society that it is underrepresented and undermarketed,” commented Drew Townsend, GSB’s president and CEO. “The vision the society presented for use of the space dovetails with our desire to be a contributor to the prosperity of the market we serve.” The Gateway to History will function as a center for ticket sales, a transportation hub, the museum gift shop and point of distribution of information about the Galena Historical Society museum and all area businesses that have a substantial connection to history. It will open in May. “Galena State Bank’s community involvement differentiates it,” stated Society Executive Director Nancy Breed. “They play a leading role in the success of our organization. We are grateful for their ongoing support and investment in our future. It’s partnerships like this that would make our founders proud.” Fear of inflation shouldn’t deflate your interest in investing Roughly $1.6 trillion has been injected into America’s financial system since August 27, 2008, in response to the financial crisis and recession in hopes of jump-starting the economy. Most of this increase came via the Federal Reserve’s purchase of bonds in the open market, popularly called QE1 and QE2. “The natural reaction to seeing that much liquidity pumped into the economy is to expect a rapid escalation in prices,” said Andrew Douglas, CFA, senior vice president and chief investment officer for Wealth Management Group. “But while there are some countries experiencing a jump in inflation rates, such as China and Brazil, inflation in the United States is quite low at 1.5 percent and will stay that way for the next 12 to 18 months.” The biggest reason: nine percent. This is the unemployment rate and represents almost 14 million people looking for jobs. Wage pressures are minimal, and it will take two to three years for the economy to absorb these unemployed individuals. Only when the economy has grown enough to sop up the excesses will that $1.6 trillion become a serious issue. Even then, there is no guarantee that inflation will rise significantly. It ultimately depends upon how the Federal Reserve extracts the excess money from the economy. Why is inflation important? Generally, higher inflation or the expectation of higher inflation often leads to higher interest rates (lower bond values) and weaker stock prices. When consumers expect things to cost more in the future, they often put less “value” on their financial assets and the prices of those assets fall. “We can expect slight increases in inflation rates in the near future, towards two percent, but for now at least… inflation should not be a serious issue for the American economy,” Douglas said. The Wealth Management Group manages more than $2 billion in assets through several subsidiaries of Heartland Financial USA, Inc., parent company of Galena State Bank. For more information, visit www.wmgplanonit.com or call 815.777.0663 or toll-free 800.442.5362. • NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. No matter where you are in life… Investing is a lifelong process, and the sooner you start, the better off you may be in the long run. The first part of that process is developing consistent saving habits. Regardless of whether you are saving for retirement, a new house, a child’s college education or that once-in-a-lifetime vacation, you will need a dedicated focus on saving. Syd Sincock 815.777.5123 Bret Johnson 815.777.5115 Factors that affect your investment decisions Once you begin saving on a regular basis, you’ll need to start making important decisions about how to invest your money. No matter where you are in life you will need to consider what your investment objectives are, how long you have to pursue each objective and how comfortable you are with risk. A disciplined strategy and your financial consultant can help One of the most difficult things about investing is to discipline yourself to save an appropriate portion of your income regularly so that you can meet your investment goals. Contact one of the Financial Consultants with HTLF Investment Services today to help you achieve your financial goals no matter where you are in life. SECURITIES OFFERED THROUGH LPL FINANCIAL, MEMBER FINRA/SIPC. INSURANCE PRODUCTS OFFERED THROUGH LPL FINANCIAL OR ITS LICENSED AFFILIATES. • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. Member FDIC (11/04) MC41674 Check out our website at: www.GalenaState.com. With an interest to conserve natural resources, we have attempted to mail only one newsletter to each household. Please share your copy with other family members! 971 Gear street | galena, IL 61036 Permit #477 Dubuque, IA PAID PRSRT STD U.S. POSTAGE