Digital Magazine

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.

7

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

• Wealth management services • Estate planning and trusts • Professional trustee services • Individual and company retirement plan services

507.353.7500 or 218.773.5487 NOT FDIC Insured

• May Lose Value • No Bank Guarantee Real People. Real Results.

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Nominated for Best: • Bank • Home Mortgage • AG Lender • Financial Services Customer Service • And More Click Here to Vote

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

Real People. Real Results.

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

Real People. Real Results.

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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

Real People.

Real Results.

Click here to see all open positions

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