of Heritage Group
Member FDIC Aurora Kearney
Grand Island Stromsburg
Hastings Wood River
Back to the Basics
Our country’s credit markets are in whom have long-term investment horizons.
turmoil. The credit markets are Many of the underlying home loans (sub
tightening for many types of credit. prime loans) in the mortgage securities are
This tightness is a result of the losing their value. It’s difficult to trace where
problems in the home mortgage market created the bad loans are and thus Wall Street investors
by credit quality issues in “sub prime mortgages”. have stopped buying these securities. This
What is a sub prime mortgage? It is a home loan creates both a valuation issue (since few are
that is outside the historical loan underwriting being bought and sold) and a liquidity issue for
norms for house loans. These norms include the mortgage market. These problems have
requirements like substantial equity down spilled over to other credit markets, like
payments, income that is verifiable and sufficient commercial paper, commercial mortgage backed
to adequately service the homeowner’s loan, good securities, etc. The result is that the “spread”
credit reports, supporting appraisals, etc. (the additional interest rate necessary to
Examples of sub prime mortgage credit include: compensate for risk) between all types of private
1) Second mortgages for up to 110% of credit and risk-free US Treasury securities has
collateral value. increased significantly.
2) “Liars loans” where income is not verified. Who, what and how was this mess
3) Low rate teaser loans that readjust the created? Let’s start with the players.
interest rate up in two years. Innocent Defaulting Borrowers: These folks did
4) Interest only loans where principal is not repaid. not attempt to buy more house than they could
One must understand the history of home afford, but accepted loan terms like teaser rate
mortgage credit to obtain a real perspective on loans that contained inherent interest rate
what has happened that led to the current credit increases that resulted in their payments
debacle. From the early 1900’s to the early becoming unaffordable. Many are currently in
1980’s, most home loans were made directly by default causing losses to investors.
building and loan associations, savings and loan Greedy Borrowers: These folks purposely bought
associations (S&L’s) and life insurance homes they could not afford; signed interest only
companies. When interest rates were deregulated loans; misstated their income they knew would
by Congress in the early 1980’s many, if not most, not be verified; signed teaser loans with starting
of the S&L’s went broke. This void in home low rates knowing full well they could not make
lending was immediately filled by commercial the payments when the rate changed in a couple
banks and the onslaught of the so-called of years. Why would they do that? Because
mortgage broker. Commercial banks did not have houses were appreciating 15% to 20% a year and
good access to the long-term, fixed-rate funding they wanted to share in the big gains. They were
necessary to place home loans in their own gambling.
portfolios, so they too gave up on being direct
Rating Agencies: These are companies like Moodys and Standard & Poors.
lenders for their own portfolio and became mortgage brokers.
They are hired to “independently” evaluate the credit worthiness of the
A mortgage broker is a salesperson/agent that simply originates and sells mortgage-backed securities created and issued by the investment banks.
the home loan to a mortgage conduit. The sold mortgages are pooled They failed to dig deep enough in their credit underwriting and gave the
together by the conduit, usually an investment bank. They are packaged into problem securities an investment-grade rating. Unfortunately, their
a mortgage-backed security (MBS) or collateralized mortgage obligation independence has come into question since they were paid by the
(CMO). Each pool is split into numerous traunches with varying risk factors. investment banks from which they were to be independent.
The mortgage securities that are created by investment banks (Goldman
Mortgage Brokers: Though many are honest and forthright, they are
Sachs, Merrill Lynch, etc.) are then sold to fixed-income investors, some of
CHAIRMAN’S PERSPECTIVE Continued on page 2
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CHAIRMAN’S PERSPECTIVE CONTINUED From Page 1
basically commissioned salespeople who do not investors are shying away from purchasing
care about the credit worthiness of the loan nor do mortgage securities because not only can the Are your money market
they have any financial repercussions if the loan industry not trace the bad loans into particular
goes bad. Many brokers knew the weaknesses in securities, but it is also difficult to compute the size mutual funds paying
the system of underwriting by the investment of the potential losses since the home foreclosure higher yields than
bankers and drove truckloads of bad credit through process is just getting underway. And, when current Treasury rates?
the cracks. lenders start getting houses back from foreclosures
Investment Bankers: The Wall Street firms like and borrowers walking away from homes worth If so, then you are taking
Goldman Sachs created the conduit markets. They less than the outstanding loan balance, they will more risk than owning
start dumping the homes on an already bad
made huge fees packaging the loans into securities U.S. Treasuries.
market. The housing stock then devalues even
and selling them. They were short on underwriting
further just exacerbating the problem.
talent and did their client investors a disservice in Call Steve Arnett
“looking the other way” and “twisting the arms” of Why is Sam writing about this? How does this
the credit rating agencies to grant their junk bonds affect the average person in central Nebraska? The at 888-554-5499 today
an investment grade. answer is in various ways. First, expect more for protection against the
stringent underwriting if you are looking for a current market turbulence.
These Wall Street investment houses were home loan. Second, make sure you go to a lender
paramount in creating this whole home loan you trust so you do not get sold flaky terms on your
disintermediation process. By disintermediation, I new mortgage loan. Third, if you have investment other players suffer the financial losses associated
mean the process of skipping the S&L’s and money, ask your portfolio advisor if you own with their behavior and poor business practices.
commercial banks that historically had anything with sub prime exposure. Fourth, the sub Further, the Federal Reserve’s main tool to help
underwritten these loans. You see, underwriting prime debacle will create many opportunities for is their ability to lower interest rates, which is
takes knowledge and talent. Knowledge and talent astute investors. If your broker/money manager is not fair to the savers and conservative fixed-
takes good people and people are expensive. As an just a mutual fund salesperson, consider upgrading income investors.
alternative to quality underwriting and local to people who search out real opportunities in the What Congress should do (not the Federal
knowledge, the industry created computer models marketplace. Fifth, if you have CD’s or other fixed- Reserve) is attempt to help the “innocent
and made credit decisions based on mathematical rate investments, you need to make a decision on borrower”, but not the greedy borrower.
scoring. It took less people and was less expensive, your expectation of the direction of future interest Innocent borrowers may just need some time and
but obviously had weaknesses. rate moves. Most economists and large banks are the ability to refinance their loans at normal
Investors: The final buyers of the “paper” committed begging the Federal Reserve to drop rates. Finally, market rates. This will not cost much and could
the ultimate sin of not understanding what they the sub prime problem is going to exacerbate the help stabilize housing markets.
were buying. They paid too much for the paper and housing problem and contribute to the devaluation Further, the industry should go back to a
failed to require a reasonable credit premium. of homes in many parts of the country. lending system where the originator and
Housing Market: The housing market is a player in Solution: Many on Wall Street and in Congress underwriter are also the investor and where such
the credit problem as well. Housing markets are are begging the Federal Reserve to bail out the big person has a financial stake in the performance of
local in nature and many markets in Florida, banks, investment banks and investors (pension the loan they make (“direct lending”). If this
Arizona and California have appreciated much too funds, university endowments, hedge funds) to were the lending system, this problem could have
fast (bubble). Homebuilders have now overbuilt in ease the pain. Once again, this would lead to a been avoided or minimized. In lending, whether
these markets and there is now home value moral hazard when you privatize the profits and its to consumers on homes or to businesses, its
depreciation occurring. Many economists expect socialize the losses. This rewards poor time to get . . . back to the basics.
that we are just at the tip of the iceberg in housing underwriting, gambling and excessive risk taking. Sam L. Moyer, President & CEO
devaluation in a lot of the biggest and most This would be an unwarranted solution. We need Heritage Bank
overbuilt markets. This is important because to let the investment banks, big banks and all email@example.com
Heritage Bank’s Premier Club customers and the season with their Holiday Under Glass Trip includes deluxe Doc Holiday motorcoach
guests are invited to join in on these fun and luncheon and holiday concert. Following a transportation from Hastings, Doniphan, Grand
exciting trips. Call for reservations today! museum tour as well, we’ll head to Lauritzen Island, Aurora and York, museum admission and
Christmas Magic Gardens. Each year they put on a spectacular concert, $10 for cafeteria-style lunch service at
December 4th Poinsettia Garden, and we’ll receive a guided tour the Durham Café at Joslyn (keep the change if you
$63 per person of the colorful plants. Then, we’ll tour a unique don’t need the whole $10!), garden admission and
The wonders of the holiday season will come alive Omaha Ukrainian Church to see how Christmas is tour, Ukrainian church tour and dessert, plus
with this fascinating day trip! First stop will be celebrated in the Ukraine. We’ll even be treated to Heritage Bank escorts. Reservation deadline is
Joslyn Art Museum where we’ll enjoy the sounds of a special Ukrainian dessert before heading home. November 1st.
www.bankonheritage.com Service You Can Bank On
Wall Street Insights
Planning a Long-Term Strategy? Don’t Forget About Inflation!
Anyone who has paid for Investing to Beat Inflation Another option is a stock mutual fund, which
gasoline, health care or college offers the benefit of professional management.
Over the long run — 10 years or more —
tuition lately knows that even if Stock mutual funds have demonstrated the
stocks may provide the best potential for
Mike Landgren the overall rate of inflation is
same long-term growth potential as individual
returns that exceed inflation. While past
modest, there are areas where stocks. S&P tracked domestic equity mutual
performance is no guarantee of future results,
costs are rising more dramatically. Earning funds from 1987 through 2006 and found an
stocks have historically provided higher
returns that exceed the cost of living is average return of 11.8%.4
returns than other asset classes. A Standard &
important for all investors, but it is especially Poor’s analysis of holding periods between Whether you’re a first-time investor or an
critical for those who may depend on their 1926 and 2006 found that the annual return for experienced retiree, you need to keep inflation
portfolios as a source of income. a portfolio comprised exclusively of stocks in in your sights. Stocks may be your best
the S&P 500 was 10.49% — well above the weapon, and there are many ways to include
What Is Inflation? average inflation rate of 3.04% for the same them. Your financial advisor can help you
period.3 The average annual return for long- determine your best options.
Inflation is the increase in the price of any
term government bonds, on the other hand, This article is not intended to provide specific investment
good or service. The most commonly referenced
was only 4.86%. or tax advice for any individual. Consult me, Mike Landgren,
measure of that increase is the Consumer Price with questions at 402-461-2192 or 888-463-6611.
Index (CPI), which is based on a monthly survey
by the U.S. Bureau of Labor Statistics. The CPI A Balancing Act Mike Landgren, Investment Officer
compares current and past prices of a sample Keep in mind that stocks do involve greater Heritage Bank
“market basket” of goods from a variety of risk of short-term fluctuations than other types firstname.lastname@example.org
categories including housing, food and of investments. Unlike a bond, which
transportation. guarantees a fixed return if you hold it until Investing in mutual funds involve risk, including possible loss
maturity, a stock can rise or fall in value based of principal. Investments in specialized industry sectors have
Inflation has been a consistent fact of life for on daily events in the stock market, trends in additional risks, which are outlined in the prospectus.
U.S. consumers. Between 1900 and 1970, the economy or problems at the issuing
Bonds are subject to market and interest rate risk of sold prior
inflation was moderate, averaging 2.5% company. But if you have a long investment to maturity. Bond values will decline as interest rate rise and
annually. From 1970 to 1990, however, the time frame, you may find that stocks offer the are subject to availability and change in price.
average rate increased to around 6%, hitting a best chance to beat inflation.
high of 13.3% in 1979.1 Recently, rates have 1
Source: U.S. Bureau of Labor Statistics.
The key is to consider your time frame, your 2
been closer to the 2% to 4% range, averaging
income needs and how much volatility you are 3 Based on an average annual inflation rate of 4%.
3.2% in 2006. willing to accept, and then construct a Source: Standard & Poor’s. Performance is for the
period December 31, 1926, to December 31, 2006.
portfolio with a mix of stocks and other Stocks are represented by the total return of the S&P
What It Means to Your Finances investments. For instance, if you have 30 or 40 500 Index, bonds by long-term Treasuries (10+
An inflation rate of 4% might not seem years until you plan to retire, a portfolio years). Past performance cannot guarantee future
results. Individuals cannot invest directly in any
significant until you consider the long-term weighted to stocks or stock funds might be index. Results include reinvested dividends.
effect on your purchases and your investments. suitable. But even if you are approaching 4 Source: Standard & Poor’s. Based on average annual
For example, in 20 years, 4% inflation annually retirement, you may still need to maintain returns of all U.S. equity funds, including sector and
some growth-oriented investments as a hedge
would drive the value of a dollar down to $0.44. balanced funds. Does not reflect sales charges or other
against inflation. Your retirement assets may expenses associated with purchasing mutual fund
Inflation also works against your need to last for 30 years or more, and inflation shares. Past performance is no guarantee of future
investments. When pursuing long-term will continue to work against you throughout. results.
financial goals, from college savings for your There are many ways to include stocks in Securities and Insurance Products offered through
loved ones to your own retirement, it’s your long-term plan in whatever proportion Linsco/Private Ledger, member NASD/SIPC. Not FDIC
insured. No Bank Guarantee. May lose Value. Not a
important to consider the real rate of return, you decide is appropriate. You and your deposit. Not insured by any Federal Government
which is determined by figuring in the effects financial advisor could create a diversified Agency. Heritage Bank is not a Broker/Dealer nor
of inflation. portfolio of shares from companies you select. affiliated with Linsco/Private Ledger
www.bankonheritage.com Service You Can Bank On
Harvest Is Finally Here. Are You Really Ready?
As I talk with farmers every are not selling right out of the field, where that’s what we do every day.
day, the conversation inevitably will they go? Will the unusually wide basis
From everyone at Heritage Bank – have a
centers around how good are the be a major factor in your decision?
Wayne Beck safe and bountiful harvest!
Nebraska Cornhuskers this year Something you need to think about.
or just how good the corn crop is looking. I
Have you talked to the elevator about bin Wayne Beck,
won’t speculate on the Huskers right now,
space? Are they going to be able to take it Relationship Manager
but I can tell you that this may be one of the
best crop years our territory has seen in the
all? At first, I am sure it will not be much of Heritage Bank, Stromsburg
last decade. As of this writing, much of Polk a problem but with the added bushels, what
and York counties have been blessed with are they going to do with it. We
moisture and most of it has come at very know there is already a
opportune times. Many of the yield estimates shortage of rail cars and it’s not
that I am hearing on irrigated corn are going to get much better by the
coming in at the 215 to 240 bushels per acre end of harvest. There was a
range. Dry land corn is estimated up to 170 large amount of corn stored on
bushels per acre in some areas and much of it the ground in 2006. Imagine
could average 150 bushels. Soybeans aren’t what 2007 will be like if we
much different though a little early to start raise 10 or 20 percent more
guessing yields. I am sure that not every corn this year!
place has been so fortunate but as I drive
Have you anticipated some
through the country, there are vast areas of
delays? They may come in the
excellent looking crops.
form of mechanical failure,
My question to many of the farmers is: weather delays, and problems at
“What are you going to do with all that the elevator or long lines. All
corn?” The answers range from a very this needs to be factored in so
sophisticated plan to “I’ve never really that you are not pressured into
thought that much about it.” If you really making a bad decision. At least
haven’t given it much thought, now is the you can have an alternative plan
time to get a plan put together. You have if things do not fall into place.
done an excellent job of growing the crop,
now is the time to figure out how you are I am not writing to give you
going to market the crop. One is just as all the answers because first of
important as the other. all, no one has all the answers
and second, these are not “one
Do you have enough space of your own if size fits all” questions.
you are pleasantly surprised with your
However, I would invite you to
yields? What would you do with all of the
call or stop in and see any one
“excess bushels” that do not fit in the bins?
of the Heritage Bank
Is there a better alternative to piling it on
Relationship Managers to visit
about your unique situation.
As is usually the case, these “excess Put our Ag expertise to work
bushels” are not priced. What is your helping you make the best
marketing plan for these bushels? If you decision for your operation –
www.bankonheritage.com Service You Can Bank On
Insurance for Identity Theft – Is There Such a Thing?
Insurance is simply a risk • Loan re-application fees containing your name, social security number,
management tool, right? Insurance • Attorney fees bank account number or any credit cards?
cannot prevent events from • Costs of long distance phone calls • Have you ever responded to an email divulging
happening, but rather it is designed more information than you feel you should have
Linda DeWitt to protect you in the event of a loss. Through a partnership with Worldwide Assistance, in hindsight?
Whenever a consumer, farm owner Allied also offers some of the best service available in • Do you shred your receipts, bills and other
or business owner contemplates his the industry, including 24/7 assistance from documents containing your personal financial
insurance needs, he needs to weigh experienced professionals who will: information before you put them in the trash?
the costs of purchasing insurance to • Has anyone in your household received a phone
protect against a potential loss • Assist in identifying fraudulent accounts
• Place a “fraud alert” on your credit reports call asking to “confirm” your bank account or
versus the benefits of having that credit card information and actually given it out?
coverage if/when a loss occurs. This • Report your ID theft to the Federal Trade
Commission We are amazed at how many people provide the
Nancy Parks article is designed to make you aware
• Notify credit-reporting agencies requested information without first thinking “Is
of one of the newer insurance
• Contact creditors on your behalf this a legitimate request?”
protections available on the market, and some
considerations that should weigh into your decision • Assist in replacing driver’s license, passport,
To learn more about identity theft and how you can
to purchase this coverage or not. social security card and any other identification
prevent it, we recommend you visit the Federal Trade
We hope you’re aware by now of the prevalence of Commission website at www.ftc.gov/bcp/edu/
• Provide an emergency cash advance when
identity theft nationwide, including right here in microsites/idtheft/. They estimate that as many as 9
needed, if theft occurs away from home
Nebraska, as well as the nightmares that come with million Americans have their identity stolen each year.
having your identity stolen. Our co-workers at Plus, for no additional fee, one person per policy may The decision to purchase Identity Theft coverage is
Heritage Bank help people who have been victims of also sign up annually for Allied’s credit monitoring
this crime as they try to stop more damage from
yours to make. It’s our job as experienced insurance
service from TransUnion, one of the country’s three professionals to make you aware that this relatively
occurring and then set about unwinding the tangled biggest credit-rating organizations. Additional
web the thief has left behind. Falling prey to an new coverage is available and what benefits it will
insureds may be added for a small monthly fee if you provide if you ever need it. At Heritage Insurance we
identity thief is much like being caught in spider’s so choose. Customers are notified if any changes are
web – there is no easy out! If you ask someone who take our responsibility to our clients very seriously,
made to their report. Monitored data includes:
has been through that process, they’ll likely tell you and we have your best interest at heart. If you’re
of the time and energy they’ve spent on the phone • Address currently an Allied customer and would like to learn
with every creditor involved not to mention the • Employment more about this endorsement, just give us a call. If
credit bureaus and so on. • New inquiries—details which creditor has you’re insured with another company today, we would
reviewed the file be happy to provide you with a no obligation quote
So what can you do to protect yourself against the
• New accounts—provides information about an and help you compare coverages.
pain of identity theft before it happens? Well,
certainly safeguarding your personal financial new account opened in the member’s name Contact any one of the professionals at Heritage
information very carefully is key. But, our • Delinquent account/late payment—provides an Insurance in Aurora, Grand Island, Hastings,
experience tells us that ID theft victims don’t often alert if an account moves into late pay status Kearney, Neligh, Stromsburg or Wood River today.
look back and see that they’ve been careless – they’re • Bankruptcy—indicates if an account is included
usually people just like you and us. They’re stymied in a bankruptcy filing Linda DeWitt
as to how it could have happened! • Fraud alerts—indicates when an alert had been Heritage Insurance, Agent
added to the file by the member or another 308-583-2266 x18
Beyond being careful, you can now insure yourself email@example.com
with Identity Theft coverage. We can’t speak for all
insurance companies, but Allied Insurance does So, is this coverage worth it? That’s what we Nancy Parks
make this coverage available at a very affordable price always have to ask ourselves when deciding what risks Heritage Insurance, Agent
– just $45 a year! This endorsement can be added to to insure ourselves against. Only you can answer that 402-887-4171
your homeowners, condo, or renter’s coverage. Let’s for your unique situation. But first of all ask yourself, firstname.lastname@example.org
be clear -- this form of insurance cannot prevent is the simple peace of mind of knowing you’ll have
identity theft. Rather, it provides assistance if your these resources at your disposal if it happens worth Heritage Insurance is an independent insurance
identity is ever stolen. Specifically, Allied will pay up agency representing many strong insurance
$45 a year ($.12 a day)? Several other factors worth
to $25,000 with no deductible to cover expenses companies. This means that we can approach
considering include but are not limited to:
incurred to restore your identity, including: multiple companies to find you a competitive
• Costs of executing affidavits • How would you know it if your identity had been solution for your home, auto, farm, business, life,
• Costs of certified mail stolen, and how quickly would you find out? and crop insurance needs. Heritage Insurance has
• Lost income (maximum $250 per day, Minimizing the damage is a race against the clock. been meeting the risk management needs of clients
total of $5,000) • Have you ever lost your wallet or purse throughout Nebraska since 1952.
www.bankonheritage.com Service You Can Bank On
AURORA settle along the trail. They set up trading posts and of experience sets Conditioned Air Mechanical apart
Under Construction established farms and ranches. One of these people was from many other businesses in the industry. Dan states,
W.J. Burger who founded the town of Doniphan. “Providing outstanding and first class service at a fair
Crews in Aurora have been busy for the past several and reasonable price is what Conditioned Air Mechanical
Jay Gould, a New York financier and robber baron,
months with multiple construction projects. The is all about”.
was a key player in the start of Doniphan. Jay Gould was
finishing touches to a few are getting near, and by the
a major shareowner of the original Union Pacific Rail Heritage Bank and Heritage Insurance are pleased
time you are reading this they may very well be
Road. By the 1870’s the St. Joseph and Western Rail Road and proud to have earned the opportunity to work with
complete. Highway 14 that runs north and south
had reached Hastings, Nebraska. Jay Gould purchased Dan, Sheila and Conditioned Air Mechanical. Heritage
through Aurora has been undergoing a complete
this railroad and constructed a 24-mile rail line to Grand congratulates Dan and Sheila on their success and
replacement for most of the summer. Widening of the Island, Nebraska. Shortly after the completion of that rail
highway and making a few of the corners easier to wishes them and their company the best in the future.
line W. J. Burger purchased the land and platted the
maneuver for larger vehicles is a very welcomed original town of Doniphan. The town is named after Col.
enhancement. Many businesses as well as residents in John Doniphan. He was an attorney in St. Joseph, HASTINGS
the community were affected with the road Missouri who worked for Gould and also, the St. Joseph “And the winner is…”
construction, however the public and traffic seemed to Rail Road. In the early 1900’s the town had two banks,
adjust fine by taking alternate routes through town. five grain elevators, a brickyard, a lumberyard, several On June 25, 2007, Yahoo! Inc. announced that
general stores and several service business all common Hastings, Nebraska won its “Be a Better Planet”
A second project that has been completed is the
to that era. Greenest City in America challenge. Hastings received a
downtown redevelopment project that has occurred over
grand prize of $250,000 to be dedicated toward city
the past two summers. With new sidewalks, curbing and This year the ownership of a 98-acre tract of land just greening projects, developed in conjunction with Global
lighting around the downtown square, shoppers in west across Highway 281 changed hands. The new owner Green USA. More than 350 cities participated in the “Be
Aurora will have an excellent experience not only inside reportedly plans to establish a new business district and a Better Planet”program, which challenged Americans
the stores but also now as they stroll around downtown. additional sites for new homes. This will augment the to take action against climate change and use tools such
The new pavement and handicap accessible points makes Amick Acres subdivisions located further to the west as as Yahoo! to become better planetarians.
it possible for all to enjoy. If you haven’t been to Aurora well as the new residential subdivision on the east side of
lately, it is worth your trip to see the new redeveloped town. It is interesting to note that this transaction took “The determined green spirit demonstrated by the
downtown area. place in the year of the 150th anniversary of Hall County. people of Hastings, Nebraska, underscores our belief
Thirdly, the Aurora School District has been a busy that individual actions can add up to significant
The Annual Fall Festival is Doniphan’s big celebration change,” said Yahoo! Co-Founder David Filo. “Cities
construction zone this past summer and is getting closer every year. This year promises to be bigger and better
to being finished. The school year for the Aurora students from the coasts to the heartland rallied together to
with the 150th anniversary of Hall County being participate and we’re encouraged by how the citizens
started a few days later than expected because of the celebrated in conjunction with the annual festival. came together around this important cause.”
construction, however I don’t believe the students minded Proceeds generated help fund the Cemetery budget. So,
it much. Everyone adjusted and the Aurora School come on over October 6th and enjoy yourselves Yahoo! declared Hastings the “Greenest City in
Administrative team and teachers should be congratulated America” at a Yahoo!-hosted Nebraska-style BBQ and
on a job well done in getting the school and classrooms celebration at Hastings’ Chautauqua Park. Residents of
ready. The extra space that has been added-on will enable GRAND ISLAND Hastings were invited to join Mayor Matt Rossen as he
the school district to accommodate the needs of the Experience Counts! accepted the award on behalf of the city. Nebraska
students and educators in the Aurora School District. The Lieutenant Governor Rick Sheehy was also in attendance
Aurora School District has always been spoken of highly Six years ago, Dan and Sheila Morrell started as well as other city & state government officials.
and this project will enable the District to continue to be Conditioned Air Mechanical Systems and Service Co.
Conditioned Air Mechanical is a Nebraska corporation “Hastings is honored to be a part of Yahoo!’s ‘Be a
an excellent educational institution.
that specializes in the servicing of commercial and Better Planet’ program and to be crowned as the
We in Aurora invite all of our surrounding township industrial heating and air conditioning systems. The greenest city in America,” said Mayor Rossen. “This
neighbors to come visit us and enjoy these recent company can provide regular maintenance programs and achievement has spurred us to become even greener,
improvements to our community! has the capability to replace or retrofit existing boilers, and we thank all of the citizens in central Nebraska who
chillers, air handlers, pumps and control systems. The have supported us and helped promote this great city
DONIPHAN company has six employees based in Omaha, Grand and state in which we live.”
Island, and North Platte, all with a minimum of 20 years Subsequent to receiving the award, the city created
Happy Anniversary Hall County! experience in this field. the Green City Task Force to lead the charge in what can
This year Hall County celebrates its 150th Over the past few years the business has seen many be done in Hastings to protect our community’s quality
anniversary. All of the towns in the county have had or changes, from the restricted use and sale of refrigerants of living. One of the priorities that the Task Force has
will have special events to remember the past 150 years. to the implementation of higher energy efficiency identified is to make it easy for the public to be a part of
Doniphan will combine its celebration with the Annual standards on new equipment. Additionally, a large the historic planning process. Go to
Fall Festival on October 6, 2007. challenge for Dan and Sheila as owners of this business www.gogreenhastings.com to be part of the process.
It is interesting to note that Doniphan is the only Hall is fewer people choosing the industry in which to work
Heritage Bank would like to congratulate the
County town located south of the Platte River. In the mid and start a career. Consequently, Dan and Sheila are
always looking for good, well-trained technicians to citizens of the community and area on becoming the
1800’s pioneers traveled along the trails that often ran
parallel to the rivers. The Nebraska City—Fort Kearney support the growth of their company. “Greenest city” along with all the individuals and
Trail was one such trail. It ran along the south side of the organizations that worked hard to make it happen.
Dan has over 27 years of experience and worked for
Platte River. Some of the early travelers began to stop and one of the nation’s largest HVAC companies. Those years SPOTLIGHT continued on page 7
www.bankonheritage.com Service You Can Bank On
SPOTLIGHT continued from page 6
KEARNEY sand beach with swimming and fishing. There is even a WOOD RIVER
three-person waterslide nearby!
Making Dreams Come True 50 Years and Counting
Guests are welcome to use the fire pit, full basketball/ The all-
tennis court, and waterslide whenever they would like. The American story of
want to freshen up
Walnut Grove Inn will close this fall for repairs on the pond. Post WWII family-
your own home or
“It has been a lot of work, but we have enjoyed meeting so owned businesses is
you’re searching for
many wonderful people,” said Traci. They are excited to finish one that’s been told
a special present,
the upcoming landscaping projects so they can reopen for before. But as these
Annie Kay & Co.
more guests next summer. So, if you’re looking for a relaxing businesses enter
has got you
northeast Nebraska getaway, this bed & breakfast has just their 3rd or 4th
covered! Annie Kay
what you are looking for. Call Traci or Roger at 402-887-4674 generation, their
& Co., located at
to make a reservation. long-term viability
Avenue in Kearney, is the perfect ticket to all your home While visiting northeast Nebraska, you might enjoy one is often uncertain.
décor and gift ideas. Heritage Bank provided the financing of these interesting attractions – In Neligh: Starlite Drive-In Escalating health insurance costs, the constant demands
for this firm using a Small Business Administration (SBA) Movie Theater (one of the few left in the country), Neligh placed on the owners’ time and resources, and changes
program called Community Express. Community Express is Mills State Historical Site, Pierson Wildlife Museum within the industry all take their toll. For this reason, we
targeted specifically to women, minorities and/or businesses Learning Center, Antelope County Jail Museum/Log all need to take time to salute these family owned
located in blighted areas. The mother-daughter duo, Noreen Cabin (an old County Jail, reproduction log cabin and The businesses while they’re still here with us.
Malchow and Tammy Kaup, had their loan approved in less Pioneer Church), Cowboy Trail (a national rail trail built on One such business is the R.E. Mead Shop in Wood River,
than 24 hours! With hard work and smiling faces their the former C & NW line through Neligh); In the area: which specializes in farm machinery repair. It was formed
dream became reality. Grove Lake Trout Rearing Station (can feed the trout, in 1957 when Chuck Mead and his father Ron Mead
Annie Kay & Co. recently celebrated their Grand Opening located north and east of Royal), Ashfall Fossil Beds State purchased the interest of Art Mead in the original Mead
in August. As soon as the door swings open the fresh aroma Historical Park (amazing display of 12 million year old Bros. Blacksmith Shop. The original business was founded
fills the air and the friendly staff is there to greet with a smile fossils left intact for public viewing www.ashfall.unl.edu. in 1948, so it’s been in the family for nearly 60 years.
and help with anything you may need! The store is filled Countless hours of hard work and excellent service have
with country-styled home décor, candles, and picture frames. STROMSBURG been logged since then. The R.E. Mead shop celebrated its
They also feature beautiful quilts, and their greeting cards Townhouse Worth visiting 50th anniversary in July with an open house. They estimate
have been a big hit! Annie Kay & Co. just received their fall they served around 300 people that day, which is evidence of
The Townhouse is a home décor and gift shop located in
items and the women have been busy decorating. As the the strong relationships they’ve built over the years. As
downtown Stromsburg, NE. Whether you’ve heard of this shop
seasons change, so will the merchandise! Their regular Chuck’s wife, Judy, pointed out “Many of our customers are
or not, you’ll want to put it on your list of “must-see’s”. Some
hours are Monday through Saturday 10:00-5:30. Also, they 2nd and 3rd generation farm customers too.”
may have also known it as Town & Country or even Aunt Ruth’s
are open until 8:00 on Thursday evenings if you need a quick House. The name has changed, but the owners have not. Shari The business that once replaced steel wheels on wagons
gift after work! Don’t miss Annie Kay& Co. the next time Sundberg, Jean Waller and Shirley Baker make up this trio, with tires, and spent much of the spring pounding plow
you’re in Kearney! which have been together for about 19 years. This business lathes, now repairs all types of farm machinery.
began 19 years ago as Aunt Ruth’s House located 1 mile north Consolidation of many small farming operations into fewer
and 3 miles west of Stromsburg. They later moved to downtown
NELIGH Stromsburg and changed their name to Town & County. A year
numbers but larger operations usually means less business
for a shop such as this. Technological advancements make
A little home away from home ago they moved to the old lumber yard building that had been the repair work more complex these days. Plus the advent
recently remodeled and changed to their present name – The
Roger and Traci Rudloff are busy with their new bed & of equipment leasing has reduced the need for independent
Townhouse. One thing remains the same –their commitment.
breakfast, called shops’ repair services since leased equipment must be
The Townhouse mission “is to educate and inspire customers as
the Walnut Grove they decorate their homes, and to provide variety and quality for
serviced by the dealer.
Inn, on the edge every gift giving need in a welcoming home-like atmosphere.” We would like to take this opportunity to recognize
of Neligh. This Chuck & Judy Mead for the leadership they’ve shown in
The Townhouse has a great variety of products for sale, from
modern style Wood River throughout the years. Despite the fact that
items for entertaining to kitchen gadgets to gourmet food. On
guesthouse was Saturdays they serve samples from the pantry. You can find baby these business owners didn’t have a 9-5 job, they’ve been
originally built for items from clothing to toys. There are collectibles available such catalysts of growth and progress in town. Chuck served on
the expanding as Peggy Karr glass plates & serving pieces, Franz fine porcelain, the City Council and on numerous committees that
Rudloff family, but and NeQua ornaments. The Aroma products range from candles addressed important issues such as street paving, the
when they realized it wasn’t getting enough use, they turned to lamps to skin care products. You can also find jewelry and railroad crossing, school bonds to name a few. Judy served
it into a very cozy cabin for guests. The Walnut Grove Inn purses and bags by Journey and Maggie B. There are also lots of 16 years on the school board and over 10 years (and
Bed & Breakfast opened last December and is now running garden and picnic items for your enjoyment. counting) as Treasurer of her church. That too was on top
in full force. They are not open during holidays so they can Beyond shopping, The Townhouse has an in-house designer of working 33 years in downtown Wood River for
be with their family. This summer, Roger and Traci have with 20+ years of experience. She can help with problems like Markussen Bookkeeping before her retirement.
been busier than ever. Cleaning, cooking and keeping up color schemes, room arrangement and window treatments.
yard work are only a few of the many tasks. They feature Hunter Douglas, Nanik, custom designer fabrics So, on behalf of everyone in at Heritage Bank, Heritage
and hardware. Insurance and HGI Realty, we salute you Chuck & Judy.
The A-Frame style log home includes three bedrooms, a
For the 50+ years of running a successful business in this
full kitchen, living room and a loft. It sleeps six easily. Gift certificates are available and they also offer a Bridal and
community, and for all of the benefits residents enjoy
There is a cozy wood burning stove and also electric heat Baby Gift registry. You can visit The Townhouse at 415
Commercial St. in Stromsburg or visit them on the web at today that were made possible because of the time and
when needed. The house has a wrap-around deck that
www.thetownhousegifts.com. energy you invested in this town over the past 50 years.
actually hangs over the edge of the pond. The pond has a
www.bankonheritage.com Service You Can Bank On
Wealth Management Strategies
Stay the Course in Volatile Times
Do you feel like your investment “boat” reaching retirement and desiring more consistent income inevitable and normal. By staying the course, you will
has been tossed about in a worrisome from your portfolio. be positioned to profit from the bounce-back. There
storm lately? You’re not alone, and If you have an identified need for funds, keep those have always been problems affecting markets, and there
that’s a natural emotional reaction. assets safe and accessible. For people relying on cash always will be. Don’t let the latest bad news affect you.
Steve Arnett However, despite the inevitable storm, flow from their investments, I keep a few years of cash I wrote last newsletter about the benefits of
it’s important for you to keep a long-term invested in safer investments such as CDs international investing. Economic growth around the
outlook when it comes to investing or short-term bond funds. For money world is unprecedented. I believe worldwide strength will
successfully. not needed for at least five years, I help the US economy weather whatever storms arise in
Let’s review basic investing strategy. generally use a diversified portfolio of the near future.
Given the volatile state of the stock and mutual funds, preferably low-cost funds If you’re an institutional investor, or have more than
bond market this summer, this is a timely with an index approach to investing. $100,000 to invest, we have the strategies and tools to
topic. A significant portion of your This portfolio structure allows your safe help you achieve your goals.
invested assets should have a long-term portfolio to continue meeting your cash
focus. The best long-term approach to flow needs while your more aggressive Steve Arnett, Trust Manager
investing is a diversified strategy using a investments have time to grow and Heritage Bank
concept known as asset allocation, which recover from volatile markets.
I’ve written about many times in the past. Remember, the goal of a publicly traded
Don’t make changes due to short-term company is to make money for its Steve Arnett manages trusts and investments for
problems in the markets. There are only two times to shareholders. There may be bad apples (such as Enron) from individuals, businesses and institutions with more than
change your allocation. First is to rebalance your portfolio time-to-time, but if you have a diversified strategy, one or $100,000 to invest. You can call him at 888-554-5499.
back to your original allocation (sell high-performing areas two bad apples won’t have an impact on your portfolio. Investment products are not obligations or, guaranteed
and reinvest in lower-performing areas). For most Also, the economy may be “bad” from time-to-time. or insured by the bank, the FDIC or any other
investors, rebalancing once per year is usually good Problems, such as the current liquidity crisis in the government agency. Investments are subject to risk,
enough. Second is when your goals change, such as market arising from sub prime mortgage troubles, are including possible loss of principal.
Another Reason to Use Your Heritage Bank Debit Card
Have you ever been to a store and has never written a “bad”check and has a bank account that moment and there is no chance of getting your
written a paper check, only to have the in excellent standing. In the latter case, the company account information confused with another consumer’s
cashier swipe the check through a that this merchant has contracted with to process account information. Stores rely on “real-time”
machine that reads your bank’s routing electronic checks has made a mistake. In some way the information for these debit card transactions and as
Kevin number and your account number, and routing number and/or account number on this check long as you have sufficient funds in your checking
Henderson then hand you the check back as your has accidentally matched that of another person in their account, you will have a pleasant transaction with the
receipt? If so, hopefully you haven’t encountered any database who may have a checking account at another clerk. A description of where you completed the
problems with this type of transaction. Merchants do institution. The account it accidentally matched with transaction will be listed on your bank statement and
this to eliminate the paper and the need to physically may well not be in good standing with the store. The your Heritage Bank Internet Banking account history if
transport lots of checks to their bank for deposit. clerk at the store cannot possibly be aware of the you are enrolled. If you haven’t applied for your
mismatch or what exactly has transpired. The only way Heritage Bank Check Card yet, please contact your
Unfortunately, there have been many cases where
that the customer can get an explanation and fix the favorite Heritage Banker for assistance. There is NO
consumers have had their paper check turned into an
problem is to call the company the store has contracted COST to own the card and there aren’t any costs to use
electronic transaction in this fashion and then been told with for its “check acceptance” processing services. it either. In fact, debit card transactions don’t count
by the merchant that the store cannot accept the check After a brief conversation with the company, the toward any per item charges that may exist on your
because the account has been “blocked” by the customer can only hope that the company will correct checking product either. So, why not go with a Check
merchant’s processor. While this is an embarrassing its database so this doesn’t happen to him or her again. Card today?
moment that no one desires to experience, it occurs with
some regularity. In some cases, the merchant truly has A great way to prevent this type of embarrassing
received a “bad”check from this customer before and the situation is to use your Heritage Bank Check Card (also Kevin Henderson,
known as a debit card). When a store swipes your debit Director of Information & Technology
store has elected not to accept any more checks from Heritage Bank
that person. However, in other situations, the customer card, the card and account balance is verified with us at
www.bankonheritage.com Service You Can Bank On