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Notes of Interest NEW WEBSITE. Rentsch Completes National Check Payments Certification Program. Log onto today.

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February 2012 Inside: > Promotions > New Hire > Scholarship Info > Retirements > History Book > VISA Business Card > IRA Comparisons

Notes of Interest

www.RELIABANK.com

Rentsch Completes National Check

Payments Certification Program

Deanne Rentsch, data processor, recently passed the rigorous certification exam to become a National Check Professional (NCP). Of the 150 participants chosen nationally to take this pilot exam, only 92 passed.

The check payment system has undergone sweeping change since 2005 unlike anything previously seen in U.S. payments history. According to “The 2010 Federal Reserve Payments Study” released in December 2010, more than 96% of all checks are already processed electronically. The volume of checks processed in 2009 was more than 24 billion with a value totaling $31 trillion. Given the significant volume and value of checks in the payments system, the degree of operational and product change resulting from the shift from paper to electronics, and the complexity of ongoing regulatory changes, industry participants need to maintain and cultivate additional check expertise.

Through certification, Deanne has successfully proven a certain level of understanding of the current check payments landscape. As an NCP, Deanne has a working knowledge of every significant aspect of the new check payment system including products and operations, relevant rules and laws that govern checks, industry standards and fraud and risk mitigation considerations. To have someone that is a certified NCP on staff at Reliabank means we are better able to handle the high volume of electronic checks and payments, as well as work with customers on understanding the various changes that will be part of their banking transactions in the future.

Watch for details on our upcoming celebration.

NEW WEBSITE

Reliabank now has a new look to its website! With a fresh appearance and easy navigtion, you’re sure to enjoy it.

Log onto www.reliabank today.

Celebrating our

15th Anniversary

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Reliabank has recently announced the following promotions: Jeremy Keizer

and Michael Sonne to Vice President, Glenn IntVeld to Assistant Vice President,

and Joe Miller to real estate loan officer.

Jeremy Keizer is the manager of the Tea location. Keizer was recently elected

to the board of directors of the Tea Area Development Corporation, serving on

its events and membership committees. He serves on the Tea Junior

Achieve-ment board, the finance committee for Tea Area Park and Rec and is a member

of the Kiwanis Club and Young Professional Network of Sioux Falls. Keizer came

to Reliabank after previously working as a senior loan officer at Frontier Bank in

George and Rock Rapids, Iowa.

Michael Sonne recently completed the three-year program of The Graduate

School of Banking in Madison, WI, and is the managing officer of the Hayti

and Hazel locations. Sonne is past chairman of the Watertown Chamber of

Commerce Agriculture committee which sponsors the annual Watertown

Winter Farm Show and continues to volunteer on this committee.

In addition to work as ag and commercial loan officers, Keizer and Sonne also

serve on the bank’s Strategic Planning Team and information technology, loan,

and sales committees. Sonne is also on the credit review team.

Glenn IntVeld joined the bank as a loan officer trainee in 2007 and has built

a solid block of farm loan customers in the past five years. IntVeld is on the

bank’s credit review team and serves on the loan and sales committees. He

serves as a trustee on the Trinity Lutheran Church council and is an Estelline

Horizon’s volunteer.

Joe Miller will do real estate lending for Tea, Hartford, and Humboldt

customers. He graduated from Augustana College with a Bachelor’s Degree

in business administration in 2011. Joe’s banking experience includes teller

responsibilities at First Dakota National Bank, US Bank, and most recently

Reliabank. He grew up on a cattle ranch outside Faulkton, SD.

CEO David Johnson states, “Reliabank is pleased to recognize promising young

bankers who have demonstrated leadership in their fields.”

Promotions Announced at Reliabank

Jeremy Keizer

Joe Miller Glenn IntVeld

Mike Sonne

LIKE US?

Join us on Facebook! Keep up to date with all our bank happenings, financial information and even have the chance to win prizes!

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Reliabank in Hartford and Humboldt

hosted a free hot dog giveaway January 31st

during the West Central vs Tri-Valley

basketball games. The West Central Booster

Club presented Reliabank with a community

action plaque for their gold level donation.

It was a fun evening and we would like to

thank all the fans for taking part in this

activity!

New Lender Hired at

Reliabank Watertown

Reliabank is proud to announce the addition of Josh Hogue to its

commercial/ag

lending

team.

A 2005 graduate of Dakota State University with a double major in

Business Management and Marketing, Josh comes to Reliabank

from First Fidelity Bank in Platte, SD. Besides his six years of banking

experience, Hogue also has crop insurance and real estate licenses.

Josh and his wife Emily, originally from Hayti, have two daughters.

Josh is looking forward to getting involved in the community. During his time in Platte he has

served on the Platte Chamber of Commerce, as President of the Lake Platte Golf Club, and has

volunteered for many community events and fundraisers.

To visit with Josh about your commercial or ag lending needs, please visit him at our

North Hwy 81 location in Watertown or call him at 605-886-6000. He looks forward to

meeting you

.

Stop in at any Reliabank location, your high school guidance counselor’s office, or log on to reliabank.com for a scholarship application.*

Deadline for turning in the application to Reliabank is April 1, 2012.

• RELIABANK DAKOTA SCHOLARSHIP: Two $1,000 scholarships will be awarded to two high school seniors

attending any four-year accredited school in South Dakota. Given in conjunction with the South Dakota Bankers Association.

• RELIABANK HERITAGE SCHOLARSHIP: Four $1000 scholarships will be awarded to a high school senior

attending a four-year accredited school in state or out of state.

• RELIABANK LEGACY SCHOLARSHIP: Four $500 scholarships will be awarded to two high school seniors

attending a four-year accredited school in state or out of state.

• RELIABANK PIONEER SCHOLARSHIP: Two $500 scholarships will be awarded to a high school senior

attending a four-year accredited school or two-year technical school in state or out of state. Given in conjunction with the South Dakota Bankers Association.

• RELIABANK LATI SCHOLARSHIP: One $1,000 scholarship will be awarded to a high school senior attending

LATI in Watertown.

*Some restrictions apply.

ATTENTION HIGH SCHOOL SENIORS!

Pictured: West Central Booster Club representative Travis Kuehl, James Gordon,

Tyler Feterl and John Roers.

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Online Banking www.reliabank.com

Telebank 1-877-250-2112 • 605-882-2424

Estelline•211 North Main• 57234 • 605-873-2261

Hartford • 304 W Hwy 38 • 57033 • 605-528-4000

Hartford Telebank 605-528-4500 Hayti• 117 Main Avenue • 57241 • 605-783-3616

Hazel• 31 West William • 57242 • 605-628-2961

Humboldt • 1003 West 2nd Avenue • 57035 • 605-363-3808

Tea• 720 E Kevin Drive • 57064 •605-498-3683

Watertown• 1401 4th Street NE • 57201 • 605-886-6000

Watertown SW • 830 10th St. SW • 57201 • 605-886-7700

Notes of Interest

They say it’s hard to find good help these days. Even harder is saying

goodbye to GREAT employees when retirement comes calling their names.

December found us saying goodbye to Larry Peterson, Insurance Agency

Manager for Reliabank. Larry and his wife Sandy, who was a Reliabank

employee and retired in 2011, will now have more time for traveling,

golfing, and fishing.

February 1st we said goodbye to Willis DeWitt, ag/commercial lender at our

Watertown North location. He and his wife Cheryl plan on spending time

with family and doing odd jobs on their acreage, along with getting away to

do some camping and traveling. Willis has said that he will miss all his

co-workers and customers but that he will always be available for a cup

of coffee.

We said goodbye to Sandy Krauth from our Tea Branch at the end of January.

Sandy was a part of the transition from Farmers State Bank to Reliabank and

has worked as personal banker for the past year. She says she held many

positions in her banking career, which began in 1977, and looks forward to a

new chapter in her life. She hopes to spend more time with her area

grandchildren and see much more of her grandchildren in Phoenix.

Saying Goodbye

You’ve Got Us In The Palm

Of Your Hand.

From

eMobile

Banking

Free

You’ve Got Us Of Your HandsIn The Palm

Larry Peterson

Sandy Krauth

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David W. Johnson, CEO of Reliabank, invites customers to

view the Reliabank history book now available at all

locations. The book was written by director Jan Johnson

with graphic design completed by Reid Johnson of the

marketing department. The two Johnsons also happen to

be David’s wife and son.

There are few family businesses that have the chance to

ever write a history book, but with David’s vision, his

family’s writing and design expertise, and the help of

employees who provided pictures, the project came

together. “The fact that we have the people capable to do this is quite a feat for a community bank

like Reliabank,” states Johnson. “I am extremely proud of my wife, Jan, and my son Reid,

who worked countless hours sifting through old photos, organizing the timeline, writing captions

and creating the book.”

Reliabank (FKA Farmers National Bank and Farmers State Bank) was chartered in 1920 by Fred

Beskow, a farmer from South Shore, South Dakota, and purchased by David W. Johnson’s father,

Wal-ter, in 1968 as a $4 million bank. The family retained ownership after Walter’s death in 1976. David

W. Johnson and his sister Cynthia formed Big Sioux Financial in 1988 to buy the bank, and the David

W. Johnson family purchased Cynthia’s stock in 2003. Reliabank is currently a $230

million locally owned community bank.

VISA Platinum Business Card – the Perfect Choice

As a small business owner, you know it’s important to keep your business spending separate from your personal spending. That’s why the Reliabank VISA® Platinum Business card is the option more and more owners are choosing.

Enjoy a no annual fee card and 0% fixed introductory APR for purchases and balance transfers.*

Choose from either the Platinum Edition card with the most competitive APR or the Platinum Rewards card that lets you earn points for every qualifying net dollar you spend. Plus enjoy these additional features:

• Auto Rental Collision Damage Waiver • Travel Accident Insurance

• Lost or Stolen Card Replacement • Fraud Monitoring

• Identity Theft Assistance • ... and much more

By applying for and using your community bank card, you can always count on personal service and

hometown convenience along with worldwide acceptance. Visit www.reliabank.com for more information on our credit card options or to apply online.

You have to go a long way to beat our Visa® Platinum Small Business Credit Card!

*0% Fixed Introductory APR for purchases and balance transfers for first six billing cycles after account opening.

Learn about Reliabank from

new History Book

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Comparison of Traditional

IRAs and Roth IRAs

You can move funds from an IRA to the same type of IRA with a different institution (e.g., traditional to traditional, Roth to Roth). No taxes or penalty will be imposed if you arrange for the old IRA trustee to transfer your funds directly to the new IRA trustee. The other option is to have your funds distributed to you first and then roll them over to the new IRA trustee yourself. You’ll still avoid taxes and penalty as long as you complete the rollover within 60 days from the date you receive the funds.

You may also be able to convert the funds from a traditional IRA to a Roth IRA. This decision is complicated, however, so be sure to consult a tax advisor. He or she can help you weigh the benefits of shifting funds against the tax consequences and other drawbacks.

Note: The IRS has the authority to waive the 60-day rule for rollovers under certain limited circumstances, such as proven hardship.

TM

FINANCIAL SERVICES, INC.

M e m b e r F I N R A / S I P C

RAYMOND

J

AMES

Securities offered exclusively through Raymond James Financial Services, Inc., Member FINRA/SIPC, an independent broker/dealer, and are: NOT a deposit. NOT

insured by FDIC or any federal government agency. NOT GUARANTEED by the financial institution. Subject to risk and may lose value.

1401 4th St NE • Watertown • 605-882-4280 Sharon Mack CPA/Financial Advisor Kasey Chapin Financial Advisor Dustin Padgett CFP®

TradiTional ira TradiTional ira roTh ira

MaxiMuMyearly

ConTribuTion (2012)

Lesser of $5,000 or 100% of earned

income ($6,000 if age 50 or older) Lesser of $5,000 or 100% of earned income ($6,000 if age 50 or older)

inCoMeliMiTaTionforConTribuTions no yes

Tax-deduCTibleConTribuTions Yes. Fully deductible if neither you nor

your spouse is covered by a retirement plan. Otherwise, your deduction depends on your income and filing status.

No. Contributions to a Roth IRA are never tax deductible.

ageresTriCTiononConTribuTions Yes. You cannot make annual

contributions beginning with the year you reach age 70 1/2.

No

Tax-deferredgrowTh Yes Yes; tax free if you meet the requirements

for a qualified distribution.

requiredMiniMuM

disTribuTionsduringlifeTiMe

Yes. Distributions must begin by April 1

following the year you reach age 70 1/2. No. Destributions are not required during your lifetime.

federalinCoMeTaxondisTribuTions Yes, to the extent that a distribution

represents deductible contributions and investment earnings.

No, for qualified distributions. For nonqualified distributions, only the earnings portion is taxable.

10% penalTyonearlydisTribuTions Yes, the penalty applies to taxable

distributions if you are under age 59 1/2 and do not qualify for an exception.

No, for qualified distributions. For non qualified distributions, the penalty may apply to the earnings portions. (Special rules apply to amounts converted from a traditional IRA to a Roth IRA.)

inCludedinTaxableesTaTeor

ira owneraTdeaTh

Yes Yes

benefiCiariespayinCoMeTax ondisTribuTionsafTer ira owner’sdeaTh

Yes, to the extent that a distribution represents deductible contributions and investment earnings.

Generally no, as long as the account has been in existence for at least five years.

References

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