More For Your Money | Adams Bank & Trust Newsletter | 4th Quarter 2021

LOSS AND BLESSINGS

2021 has been a year of challenges, opportunities, and loss, which has been heavily influenced by the COVID-19 virus. We have lost work time, family time, interaction with customers, friends and others that we care about. Our bank and our family have certainly felt the effects of this pandemic. In early fall, we lost our dad, Mel Adams, Jr., to COVID-19.

Dad was the third generation of our family to have his hand on the helm in running our bank. When he came home in 1960, the only bank in our family was the Bank of Brule. Under his leadership, Keith County Bank in Ogallala was chartered in 1962, followed by the acquisition of existing banks and new locations. At the time of his death, there were 20 branch locations in three states with over $1 billion in assets under management.

Dad was both visionary and professionally astute and was adept at utilizing new technology to better serve our customers. He was adamant in his belief that since our bank’s founding in 1916, some things have never changed, such as acting with integrity and having a

MEL ADAMS, JR. | 1935 ~ 2021

by TODD S. ADAMS chief executive officer

strong focus on excellent customer service. This is the legacy he left behind.

As we approach a new year, we are reminded that the COVID-19 virus is still with us, and the ways we do business and interact with our customers are still evolving. The new year is an opportune time to take stock of where we are at professionally, personally and financially.

First, we have many blessings to be grateful for, and I am reminded of the old hymn that tells us to “count our many blessings, count them one by one.” An attitude of gratitude is a great tonic to get through difficult times. Our blessings take many forms, including healthy bodies and relationships with loved ones and friends. Don’t forget the many freedoms we enjoy as Americans, especially the freedom to worship God, and the bountiful financial blessings we enjoy both individually and collectively in our communities. With these blessings comes the responsibility of being good stewards and using our time, talents and resources wisely. I wish everyone a healthy, happy and prosperous year to come.

Mel Adams, Jr. was born on January 31, 1935 at Ogallala, Nebraska, the son of Melvin and Lucille Adams. In his early years, Mel lived in Lemoyne, Nebraska where the family bank was established. The family and bank moved to Brule, Nebraska due to the construction of Lake McConaughy. Mel graduated from Brule High School in 1952. He then enlisted in the Nebraska National Guard, and was commissioned as an Armor Officer in the United States Army, following the tradition established by his father. During his 13 plus years of service, he rose to the rank of Captain. Mel attended the University of Nebraska, graduating with a Bachelor of Science degree in 1956. He graduated from the Independent Bankers Seminar, Harvard University in 1966 and the Colorado School of Banking in Boulder, Colorado in 1968.

On January 14, 1956, he married Huberta Beal, his high school sweetheart. They had four children together, with 17 grandchildren and 24 great-grandchildren. In 1962, Mel chartered the Keith County Bank & Trust in Ogallala. Additional banks were purchased and eventually merged and rebranded into Adams Bank & Trust, where Mel was the President, CEO and Chairman of the Board. He was President and owner of the insurance agency that became Adams Insurance Advisors. Mel was elected Chairman of the Nebraska Bankers Association in 1984 and served on the Board and as Chairman of the Graduate School of Banking in Boulder, Colorado. Mel passed away August 1, 2021 in Ogallala, leaving an enduring legacy of leadership and service.

LOOKING BACK, LOOKING AHEAD

by STEVE KRAUSE president

On behalf of Adams Bank & Trust, I want to thank our customers for another successful year.

Heading into 2022 in my new role as bank president, I look forward to continuing to work with Chad Adams in his new role as president of ADBANC, Inc., the bank’s holding company.

We’re all excited for Chad to have the time to pursue his passion for expanding the bank’s footprint and bringing our way of banking to even more communities.

With the bank recently going over $1 billion in deposits, it’s definitely been a time of growth and new relationships in the markets we serve.

For me, the best part of my role is getting to interact with our customers on a daily basis. And that’s because I like to see you succeed.

If we can contribute to your success through our financial expertise and help you take advantage of opportunities to grow, then we succeed, too. If customers succeed,

so do our communities and the regional economy. That’s the bottom line.

And that’s because I like to see you succeed.

I enjoy daily interaction with our team members, too. It’s rewarding for me to coach them as they build their skill in serving and advocating for customers.

Local decision-making is such an important part of our 100+ year legacy and culture. Unlike the bigbox banks, we’re flexible enough to tailor loans to individual needs.

Our leadership listens to our bankers and we can act quickly when the occasion calls in order to help customers take advantage of good opportunities.

Bank Expansion

We’ll be opening new branches early in 2022 with a location in Greeley, Colorado as well as a third location in Colorado Springs.

With every addition, our vision remains the same: to provide the best possible service and relationship to new customers.

Bank Milestones in 2021:

• 1,110 PPP LoansTotaling $41,753,648

• $1.1 Billion In Deposits

Agriculture

Prices look favorable going into 2022, but inflation has driven up expenses and input costs like fuel, seed and fertilizer. So farmers are going to need higher-priced corn in order to break even.

Due to widespread drought conditions, most ranchers aren’t expanding herds at this time and cattle numbers are dropping. However, cattle prices have been steady or improving.

PAYCHECK PROTECTION PROGRAM (PPP) RECAP

As we look back at the bank’s story over the past couple of years, our participation in the PPP was a big chapter.

Our lending team completed 1,110 loans totaling $41,753,648 in 2021. That brought our two-year total to 1,881 loans and $98,599,779. We’re now in the forgiveness phase of the program. At the end of the third quarter of this year, over $68 million had been repaid by Small Business Administration (SBA) Forgiveness and borrowers.

From the largest loan of $1.7 million to the smallest of $465, these loans helped our business customers to continue to pay employees and survive the economic challenges of the COVID-19 pandemic.

For me, the best part of my role at the bank is getting to interact with our customers on a daily basis.

The overall ag economy is in a better position than it was a couple of years ago, and we’re happy to see prices trending upward for our ag customers.

When we see increased costs and inflation in the ag sector, it usually produces a domino effect in the goods produced. We can all expect things to cost more next year at the grocery stores and restaurants.

When we see increased costs and inflation in the ag sector, it usually produces a domino effect in the goods produced. We can all expect things to cost more next year at the grocery stores and restaurants.

Business

Businesses are continuing to deal with the impacts of COVID19, especially when it comes to staffing. There is a high demand for employees in every sector.

Many businesses, especially restaurants, would like to be open more hours but they struggle to find help. A lot of workers are seeking work-from-home opportunities instead of in-person jobs. The rise of daycare costs is also a factor. As a business, we understand. The bank faces these same staffing issues.

Inventory and supply chain issues continue, which has driven up building costs. Some building materials are unavailable, and projects are taking longer to complete. Much like the ag sector, the impact of inflation trickles down to the consumer with higher prices on goods and services.

Our business customers have certainly faced some challenges, and we’re glad to continue to play a part in helping them steer through the “new normal” environment.

Mortgage

The rising cost of homes and new construction has had an impact on the housing supply. Home prices have risen dramatically, and bidding wars occur when homes go on sale in many markets.

Home prices have risen dramatically, and bidding wars occur when homes go on sale in many markets.

We have to wonder if these prices are sustainable. In this extremely competitive housing market, buyers should stay mindful of overspending. Have a budget when you shop and be aware of what you’re likely to get at that price point.

We have to wonder if these prices are sustainable. In this extremely competitive housing market, buyers should stay mindful of overspending. Have a budget when you shop and be aware of what you’re likely to get at that price point.

Personal

At the end of a year of significant growth, the bank’s position with deposits is strong. We’re proud to be one of the banks that offer IntraFi Network Deposits (formerly CDARS). This product can give

customers FDIC insurance on multiple higher deposits while dealing with one bank.

Interest rates remain lower due to the liquidity of banks, so we’ll continue to see lower rates on deposit accounts. While rates are expected to rise about a half percent next year, there likely won’t be a dramatic increase.

Opportunities

The effects of the pending trilliondollar government stimulus package remain to be seen, but there are likely to be opportunities in many sectors. It will pay to stay nimble and ready to act quickly. The bank will continue to monitor available government loan programs for our customers. Every year presents different opportunities and challenges. It’s good to keep your powder dry in order to be ready for those situations. Are you able to respond if a good opportunity arises for your business or family?

Every year presents different opportunities and challenges. It’s good to keep your powder dry in order to be ready for those situations. Are you able to respond if a good opportunity arises for your business or family?

Adams Bank & Trust remains ready to provide financial expertise and counsel to help you succeed in 2022 and the years to come.

PAGE 3 | your foundation for financial success

NEBRASKA

BRULE 308.287.2344

CHAPPELL 308.874.2800

GRANT 308.352.2114

IMPERIAL 308.882.4286 INDIANOLA 308.364.2215

LODGEPOLE 308.483.5211

MADRID 308.326.4223 NORTH PLATTE 308.532.5936

OGALLALA 308.284.4071 SUTHERLAND 308.386.4345

COLORADO BERTHOUD 970.532.1800 COLORADO SPRINGS 719.448.0707

FIRESTONE 303.833.3575

FORT COLLINS 970.667.4308 LONGMONT 303.651.9053 STERLING 970.522.0698

KANSAS COLBY 785.460.7868

TOLL FREE 800.422.3488 ABTBANK.COM

LIFE’S MOST IMPORTANT THINGS

From Covid-19 to many other issues families have faced over the past couple of years, we’ve all been reminded that life is precious and fragile. My family has experienced this awareness, and I’m sure yours has, too.

If there’s something that should be done today, we know we shouldn’t put it off until tomorrow. This applies not only to savoring time and relationships with loved ones but also to estate planning.

Because none of us knows what may happen tomorrow, it’s important to make sure the necessary plans are in place and to communicate those details to our families.

When should you have the conversation?

This shouldn’t be a one-time discussion, but rather one that recurs every couple of years. It’s an opportunity to refresh everyone on anything that may have changed. For example, you may have acquired a new asset or insurance policy. You may have opened college accounts for new grandchildren.

As families gather for the holidays, it’s a natural time for a family meeting or “holiday huddle.”

Why is this process so important?

Talking about the end of your life can feel uncomfortable, even morbid. No one wants to think about it. But all of us have been touched by end-of-life issues. We’ve either been through the process of helping settle an estate, or we’ve watched family members or friends go through it, so we know how difficult it can be. The more planned out and well-communicated the process, the easier it is for those left behind. Approach it from this angle: if I had to handle settling someone’s estate, what do I wish they would have done in advance?

by JACOB HOVENDICK rjfs branch manager

A PLANNING CHECKLIST:

✔ Estate Planning Essentials: Make sure your family knows where to find documents like your will, durable power of attorney, healthcare power of attorney, medical directive paperwork, and guardianship designations for any minor children.

✔ Official Records & Paperwork: These can include birth certificates, marriage certificates, divorce decrees, life insurance policies, bank account statements, retirement account and investment statements, income tax returns, home and other property deeds, and vehicle titles.

✔ Household Responsibilities: Are you responsible for paying bills and keeping track of financial accounts? Be sure to document important timelines and account information, including passwords for digital assets.

What happens at the family meeting?

The meeting can be as simple as sitting down after a meal to go over your wishes. If you think it would be helpful or diffuse potential tension, you could invite a trusted professional to moderate, such as the family accountant, attorney, or adviser.

Some of the main items to communicate include your end-of-life health directives, what you want to happen after your death, what plans you have in place, and

RAYMOND JAMES FINANCIAL SERVICES, INC. MEMBER FINRA/SIPC

Adams Bank & Trust is not a registered broker/dealer, and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC, are not insured by bank insurance, the FDIC or other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risk, including the possible loss of principal.

Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc.

where important documents are kept. If you’re a business owner, don’t forget to include succession planning in your conversation.

There are dozens of choices that come with a funeral and making decisions while grieving a loved one can be difficult. If you wish, you can leave instructions on everything from where you wish to be buried to the songs and readings you’d like at your service.

Making Your Intentions Clear

Studies have shown that families are happier and more satisfied when parents inform and include their heirs in inheritance planning. Family dynamics come into play with the handling of estates, so it’s important to communicate your intentions clearly to help manage expectations and avoid potential conflicts. This can be especially important when remarriages and blended families are involved.

Selecting Your PR

Most of the burden of settling the financial and legal aspects of your estate will fall to your personal representative or PR. There are documents that may need to be filed with the court within specific deadlines, and a final tax return must be filed, as well. Depending on assets and other circumstances, it could be a lengthy and complicated process.

A surviving spouse or eldest child is a common choice as a PR, but it’s important that the person you

40% of Americans don’t know what’s in their parents’ wills.

(Brookdale Senior Living)

Americans over 55 cite easing the burden on their loved ones as the top benefit of estate planning and other end-of-life planning.

(Age Wave/Merrill)

select is comfortable with the role. Informing the PR ahead of time would be a best practice. With these factors in mind, some people choose to appoint a professional to serve in this role, such as a trust department, attorney, or accountant.

In any case, make sure your personal representative has the contact information and access to the documents they’ll need.

Sharing Your Values

Your legacy is about much more than transferring your material assets. What is it that you want people to remember about you?

Beyond sharing the practical details, the family meeting is a chance to focus on your relationships with your loved ones and to communicate your feelings. Take the time to make sure your family members know where they stand with you, and what you appreciate most about them.

Because as we know, life is fragile, and we are not guaranteed unlimited opportunities to share the most important things.

All of us here at Raymond James Financial Services want you to know how much we value you as customers and friends. From our families to yours, a very Merry Christmas and a healthy and prosperous New Year.

Opinions expressed are those of the author and are subject to change. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation. The material is general in nature. Investing involves risk; investors may incur a profit or loss regardless of the strategy or strategies employed. There is no assurance that any investment strategy will ultimately meet its objectives. Past performance may not be indicative of future results. Asset allocation and diversification do not guarantee a profit nor protect against a loss.

For assistance in reviewing or creating your investment plan, please call any Adams Bank & Trust office or call toll free at 800.422.3488 for an appointment with a Raymond James Investment Representative. Jacob Hovendick , RJFS Financial Advisor and Branch Manager Jan Acker, RJFS Financial Advisor 308.284.4071 | 315 N SPRUCE STREET, OGALLALA, NE 69153

Jacob & Meagan Hovendick with Huxton, Harper, Heath & Henley (Tiffany Williams Photography)