Winter 2015 - BankChampaign

N.A.
WINTER 2015
Taking care of
business
Left to right:
Rogards CEO Chad
Hoffman (left) and
President Tonya Horn
(center) meet with
BankChampaign
Senior Vice President
Chris Cheely in their
store.
When Tonya Horn teamed up with
Chad and Catherine Hoffman to buy
Rogards from her father and his coowner in 2011, BankChampaign was
one of several banks they considered
working with.
“Like any business at that stage
of its lifecycle, there were some
financial indicators that were going
in the wrong direction,” Tonya,
the company’s president, said.
“BankChampaign’s Senior Vice
President Chris Cheely seemed to be
the only banker who immediately got
the scope of what we needed and the
value that Chad and I were bringing
to the table.”
A key piece of what Tonya and Chad
wanted to build upon was Rogards’
50-year tradition of superior customer
service in providing office supplies and
furniture, janitorial supplies, coffee
and break room supplies, promotional
products and custom printing.
“I think that BankChampaign’s
expertise with small businesses,
coupled with their own local
ownership, gave them insight into
the value of Rogards as a whole
– including a true understanding
of what ‘local’ means for the
community,” said Chad, Rogards’
CEO. “Chris helped us formulate
what we needed to have in place and
also functioned as an advisor to us
as we moved through the purchase
process.”
“To BankChampaign, Rogards was a
living entity in the community that
had value beyond what was on the
page,” Tonya said.
within 24 hours that we were good to
go ahead. It was something we needed
to move on pretty quickly, so that
timely response was very helpful.”
After the initial purchase financing,
Tonya and Chad added an active line
of credit and commercial checking
services with the bank. “They made us
whole in terms of what we needed to
run the business from day one,” Tonya
said.
In addition to growing and
diversifying the company’s mix
of offerings, Tonya and Chad are
continuing to give back to the
community. Once each year since
2013, Rogards has invited nonprofit
organizations to take usable office
supplies that aren’t in saleable
condition.
As Rogards has grown — at a solid
9% each year that may even
reach 10% for 2015 — so have
opportunities for acquisitions and
other business investments. Each
time, Tonya and Chad consult with
Chris first on whether the scenario is
workable.
“That’s another great thing with
BankChampaign — they don’t have
to take decisions to a large board,”
Chad said. “So when we needed to
know about financing for a potential
acquisition, Chris could let us know
In 2014, they started a program that
allows each employee to use four paid
hours each quarter to do volunteer
work for a local nonprofit group.
“We’ve been able to grow in ways
that wouldn’t have been possible if
we didn’t have a partner who believed
in us when we originally came to the
table,” Tonya said.
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Letter from the Chairman
A rich history built by delivering on promises and
a tradition of superior customer service is a solid
foundation for any business growing into its future. But as
businesses, industries, and markets evolve, it is a successful
entrepreneur who foresees the changing marketplace
and adapts with his or her customers. Our feature article
highlights a local business building from its rich history and progressing with a
new generation of owners and customers. It is this growth and adaptability that
has earned Rogards recognition from its national industry cooperative as well as
the Champaign County Chamber of Commerce as the 2015 Small Business of
the Year. Likewise, I’m pleased to salute Tonya Horn and Chad Hoffman with
Rogards, Your Workday Connection.
In today’s rapidly changing economy of consolidating businesses and a constant
stream of information, it can be challenging to discern among all of the
available options. While technology has provided great convenience in our lives,
at BankChampaign, we see it as one tool to deliver our customized financial
solutions. From online banking, cash management, bill pay, e-statements,
mobile banking, and remote deposit, BankChampaign offers the conveniences of
technology like the big banks do, with a notable advantage…our people. That is
how we’ve grown and adapted. As Tonya and Chad experienced, BankChampaign
has not only fulfilled their business’ banking needs but also provided the trusted
advice of local banking professionals.
As you wrap up 2015 and prepare for the new year, how can the professionals at
BankChampaign advise and add value for you and your business? From deposit
accounts and electronic banking to manage cash flow; investment services
regarding retirement, succession, or estate planning; to a loan for your next
personal or business purchase, let our local, knowledgeable bankers support you
in your future financial decisions. And as I reflect on another successful year,
I want to thank you for your business, and your trust, and wish you Happy
Holidays and a Happy New Year.
The Street
highlights
BankChampaign
A recent article in The Street,
a leading digital financial
media company, featured
BankChampaign’s emphasis on
customer service and use of
technology to help its customers.
BankChampaign President Mark
Ballard was interviewed about
our focus on developing in-depth
relationships with customers and
empowering employees to make
the timely decisions that best serve
our customers’ needs.
The article also mentions the
results of a 2015 national survey
of bank customers on banking
relationships and technology,
commenting that BankChampaign
has always valued respectful
interaction with its customers —
an idea that even influenced how
the bank’s layout was designed.
Read the entire article:
bit.ly/1MXzsJg
L. Dean Clausen
Chairman
Another list to check twice
As we approach the end of the year,
it’s time to evaluate your financial
picture in light of changes that have
occurred in 2015. Consider these
items as you look back and prepare to
move forward for 2016, and consult
with your tax advisor.
To receive this year-end financial
checklist with the explanatory detail,
call John Clausen at 351-2870 to
request your copy.
Income tax
Review your tax withholdings,
especially if you’ve experienced a
major life change.
Estimate your Adjusted Gross
Income (AGI) with the help of
your tax advisor.
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Determine whether you will be
subject to the Alternative Minimum
Tax (AMT) and if there are ways to
reduce your AMT liability.
Investments
Consider tax-loss harvesting to
lower taxes on capital gains.
Check to make sure you didn’t
make (or plan on making) any
“wash sales.”
Determine when you last
rebalanced your portfolio.
Retirement accounts
If you’re retired, make sure you’ve
taken all necessary Required
Minimum Distributions (RMDs).
Maximize contributions to an IRA
and employer retirement plan for
the year.
Consider converting a Traditional
IRA to a Roth IRA.
Giving
Donate to charity as a way to
reduce taxes.
Reduce your estate through gifts.
Family funding
Check your Flexible Savings
Account (FSA).
Review your Health Savings
Account (HSA).
Consider contributions to a 529
plan to fund your children’s/
grandchildren’s education.
Changes to advanced social security strategies
By John Clausen, Senior Vice President
for spousal benefits, social security
will also file an individual for personal
benefits, automatically choosing
whichever benefit is larger. This makes
it impossible to collect one benefit
while deferring a better one.
A new law passed by Congress in
November includes provisions that
removed two social security filing
strategies that allowed some couples to
take spousal benefits early while letting
their individual benefits grow for later
use.
Strategy 1: “File-and-suspend” allows
individuals to start social security
benefits at full retirement age (FRA),
and then immediately suspend them,
allowing the benefits to continue
growing until individuals reach age
70. By activating benefits once,
individuals’ spouses were free to start
collecting spousal benefits.
Changes: Social security has altered
suspension so that an individual
cannot collect benefits from another
person’s work record (spousal benefits)
while that person’s benefits are
suspended OR while his or her own
benefits are suspended. The changes
also removed the ability for individuals
to undo their suspension, which
provided a lump sum payout of all
benefits since the suspension.
Strategy 2: Sometimes used with a
suspension, the “file-and-restrict”
strategy (also called “deemed filing”)
allows an individual to file for benefits
at FRA but only as a spouse. The
individual is allowed to collect spousal
benefits while letting his or her
personal benefit continue to grow. At
age 70, the individual then switches to
his or her maximum personal benefit.
Changes: Restricted filing has
effectively been removed. When filing
People who are already using file-andsuspend or file-and-restrict will not
be affected by the changes to social
security. In addition, anyone who
reaches age 62 by Dec. 31, 2015 will
still be entitled to file-and-restrict in
its previous form.
Individuals who wish to file-andsuspend under the traditional rules
have 180 days from the enactment
of the changes — until April 2016 —
to complete their filing.
If you have questions about these
changes or your overall wealth
management plan, contact John
Clausen at 351-2870.
When can you collect social security?
Born
Full Retirement Age (FRA)
1943-1954
Age 66
1955-1959
66 plus a certain number of months
1960 or later
Age 67
See complete chart at www.ssa.gov/planners/retire/retirechart.html
FAQs on IRAs
Q.How do IRA accounts benefit me?
Q. What happens to my IRA if I die?
A. You may be able to take a tax credit
of up to $1,000 (up to $2,000 for
filing jointly) if you make eligible
contributions to a Traditional IRA.
This credit could reduce the federal
income tax you pay dollar for dollar.
Amounts in your IRA (including
earnings and gains) are not taxed
until distributed. You do not have
to take distributions until age 70 ½.
A. When you open an IRA, you name
a beneficiary. Among other options,
if your spouse is the sole beneficiary,
he/she may treat the IRA as his/
her own and keep the tax deferred
benefits. A non-spouse beneficiary
is also eligible to take distributions,
but specific conditions apply, and
it’s best to discuss the situation with
your tax or financial advisor.
You will not get a tax deduction
for making contributions to a
Roth IRA, but if you satisfy the
requirements, qualified distributions
are tax free. Contributions can be
made to your Roth IRA after you
reach age 70 ½, and you can leave
amounts in your Roth IRA as long
as you live.
Q. What if I open one type of IRA and
then change my mind?
or conversion to a Roth IRA. You
generally tell the trustee of the
financial institution holding your
Roth IRA to transfer the amount
to a Traditional IRA. If you do this
by the due date for your tax return
(including extensions), you can
treat the contribution as made to
the traditional IRA for that year
(effectively ignoring the Roth IRA
contribution.)
Q. Can I take a loan from my IRA?
A. Neither a Traditional IRA nor a
Roth IRA can permit loans.
A. The Internal Revenue Code allows
for “recharacterizations” and
conversions of IRA contributions. A
conversion of a Traditional IRA to a
Roth IRA results in taxation of any
untaxed amounts in the traditional
IRA. A recharacterization allows
you to “undo” or “reverse” a rollover
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Presort Standard
U.S. Postage
PAID
Permit No. 746
Champaign, IL
P.O. Box 1490, Champaign, IL 61824-1490
Return Service Requested
Enriching our communities
What She Said. This year’s October
event expanded to include a threeday She Said LadyFest offering events
for girls and women in addition to
storytelling by 13 area women.
Donating to local cancer
program
BankChampaign employees raised
$350 for Presence Covenant Medical
Center’s 11th annual It’s All in the
Jeans Day with their donations to
wear denim to work on October 2.
All proceeds remain in Champaign,
Urbana and Savoy to benefit cancer
prevention, detection and treatment
programs, including preventive exams
and medical equipment for patients.
Sponsoring inspirational
events for women
We were pleased to be involved in
supporting women as a sponsor at
the producer level of the third That’s
Fundraising for St. Jude
Mark Ballard, BankChampaign’s
president, was the top fundraiser
for the 2015 St. Jude Run from
Champaign-Urbana to Peoria that
took place July 31-August 1. Mark,
a member of Team Carl — the top
fundraising team in Champaign
County — brought in more than
$5,000, helping the team reach a total
of $16,381 to exceed its $15,000
goal. Overall, Champaign County
teams raised $55,400, far surpassing
the original $38,000 goal. All funds
from this relay-style event benefit St.
Jude Children’s Research Hospital to
keep cancer diagnosis and treatment
services free of charge for children and
their parents.
Serving the United Way
For the past two
years, Vice President
Peter Clausen has
been a member of the
Board of Directors for
Champaign County
United Way, and serves on the
organization’s finance committee.
“I was looking for a way to get more
involved in the community,” Peter
said, “and it’s an honor to be part of
an organization that I truly believe
in. I appreciate the positive impact of
United Way throughout the county.”
Peter’s leadership with United Way
underscores the bank’s 25-year
commitment to the annual United
Way fundraising campaign. Once
again, BankChampaign had 100%
employee participation for the year
2015.
Main Bank 2101 South Neil • 217.351.2870
MarketPlace Facility 5 Convenience Center • 217.351.2876
This publication is designed to provide news and information. It does not constitute legal, accounting or other professional advice.
Appropriate legal or accounting advice or other expert assistance should always be sought.
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