Buying your first home can feel like a daunting task. Committing all or most of your life savings, and signing up for a mortgage might be the largest and longest financial obligation you’ll ever have and that can be intimidating. However, if you know what to look for and what to avoid, you can bring a level of confidence to a process that seems overwhelming.

Life is full of curve balls. But there are two things you can count on. First, expect the unexpected. Second, the unexpected almost always comes with unplanned costs.

 Your car breaks down. Your washing machine has a glitch. Or, heaven help you, your phone dies while it’s still under contract. On the more serious side, you could get laid off from your job or suffer a serious injury that prevents you from working.

 In any of these scenarios, you would likely need to turn to your emergency savings. The problem is that 78 percent of full-time workers in the U.S. are living paycheck to paycheck, making it increasingly difficult to put aside enough money for emergencies. In fact, only 56 percent of us are able to save $100 per month.

 The uncertainty of planning for the unexpected can be stressful, especially if you’re constantly wondering whether you’re saving enough. Take these three steps to put your emergency fund on track before the next curve ball comes your way:

1. Get Real About How Much You Need

 Financial experts recommend that you set aside savings equal to three to six months’ worth of expenses as an emergency fund. To determine your number, add up what your family is spending each month. Include every non-negotiable expense, such as rent, utilities, food, transportation, and cell phones. Then, set a savings goal of at least three times that amount. For a cushion that will help you feel secure no matter what happens, keep saving until you have six times that amount.

 Because it can take some time to build up to that, start off with a smaller goal. Financial guru Dave Ramsey recommends a $1,000 starter emergency fund. Doing so helps you build some momentum by accomplishing a small goal quickly. It also protects you while you build your full fund (because something will certainly go wrong if you have nothing saved up).

2. Set Boundaries

 Set up a separate emergency fund account so day-to-day expenses don’t chip away at your savings. The best options are a basic savings account or a money market account. Money market accounts typically have higher interest rates than savings accounts, and both are fully insured by the FDIC up to $250,000.

 While there are other higher-interest options, accessibility should be the main goal for your emergency fund. Savings vehicles that focus on maximizing interest often come with access restrictions. For example, a certificate of deposit (CD) could require you to leave the money in place for several months or face a penalty for early withdrawal (which won’t do you any good if an emergency pops up and you need that money now).

 Once you’ve established the separate account, set boundaries to ensure you’ll only tap into the funds for true emergency needs. Ask yourself three questions: Is it unexpected? Is it truly necessary? Is it urgent? If you can’t answer “yes” to all three, it’s not worthy of your emergency savings.

3. Limit Your Risks

 Savings and money market accounts are good choices for more reasons than easy access. You also want to keep your emergency fund safe from too much market volatility. Even if you can access the money in a mutual fund within a day, it’s subject to risk if the market dips. An emergency situation would be compounded if the market value of the fund were reduced at the moment you needed to tap into it.

 An even riskier plan is relying on your credit card for emergencies. Credit can create a false sense of security and could end up costing you more as you pay back the accrued interest over several months.

Ready, Set, Save

 Once you’ve set your target and opened an account, all that’s left to do is save. Carving out “extra” money can be difficult, but automating your deposits makes it easier. Set up regular transfers each month or each payday to automatically move money from your checking account into your emergency savings account.

 It’s OK to start with a small amount — say, $25 per month. It adds up over time and earns interest along the way. If you can, push yourself to save a little more. Just $20 per paycheck nets you $520 in annual savings when you’re paid every other week.

 Still think saving sounds like an impossible task? Start by setting up a budget to see where all your money is going, and think about areas where you can cut back. For example, try cutting the cord and going cable-free for a year — you might end up with an extra $1,000 or so by the end of the year, which can go a long way toward establishing your emergency fund.

 Making smaller sacrifices (like cutting down your coffee shop visits from every day to just once or twice a week) can also add up. If you save $20 per week by grabbing free coffee at work rather than splurging on Starbucks every day, you can save over $1,000 in a year. And if you also pack a lunch for work rather than eating out each day, you can save at least that much that way, too.

 Also, remember that these budget cuts won’t be permanent. Once you’ve built up a healthy emergency fund, you can go back to enjoying your old habits (though it’s always a good idea to still cut back where you can so you can save more for the future).

Ready to save? The Callaway Bank can help you reach your goals with account options, no-charge auto transfers between accounts, and easy access to your money when you need it. We’re honored to be there for you and your family for the #MomentsThatMatter, as well as get you back on your feet when the unexpected happens

All Callaway Bank locations will be closed Saturday, July 4th in observance of  Independence Day.

We wish everyone a safe and enjoyable holiday weekend.  Thank you to all active military and veterans for your service to our country.

Here’s a brief overview of the start of our nation’s independence:

https://www.pbs.org/a-capitol-fourth/history/history-independence-day/

The Callaway Bank will be closed on Monday, May 25, 2020 in observance of Memorial Day.  While we hope you and your loved ones enjoy this holiday, we recognize it is more than just a time for BBQs and fun at the lake.

Especially now, during this unusual time in our country we feel it’s more important than ever to remember those who sacrificed so much for each of us.  We sincerely appreciate and remember those who fought and died for our country.  And to all veterans and active service members we say, thank you.

History of Memorial Day

From History.com:
Memorial Day is an American holiday, observed on the last Monday of May, honoring the men and women who died while serving in the U.S. military.

Originally known as Decoration Day, it originated in the years following the Civil War and became an official federal holiday in 1971. Many Americans observe Memorial Day by visiting cemeteries or memorials, holding family gatherings and participating in parades. Unofficially, it marks the beginning of the summer season.

Decoration Day

On May 5, 1868, General John A. Logan, leader of an organization for Northern Civil War veterans, called for a nationwide day of remembrance later that month. “The 30th of May, 1868, is designated for the purpose of strewing with flowers, or otherwise decorating the graves of comrades who died in defense of their country during the late rebellion, and whose bodies now lie in almost every city, village and hamlet churchyard in the land,” he proclaimed.

Read more background on the origins and traditions of Memorial Day here.

Happy Mother’s Day to all the momma’s, mom’s, mother’s, grandma’s, and gigi’s, that have helped shape us. #SpreadingJoy #MothersDay2020

“Mother is a verb. It’s something you do. Not just who you are.” – Dorothy Canfield Fisher

Criminals/Scammers are taking advantage of the fear surrounding COVID-19 and are reaching out by phone, email, text, social media, and mail and using COVID-19 as new bait to hook individuals and businesses!  One of their favorites is with stimulus checks from the government.

You’ve seen news stories about whether financial help for businesses might be available in the future. But remember that criminals read those headlines, too, and use them to make their phony pitches sound more credible. If someone calls or emails you out of the blue claiming there’s money available from a government agency if you just make an up-front payment or provide some personal information, it’s a phony. Pay attention to checks that are being cashed or deposited. This type of fraud is happening in Missouri already.  

1. The government will not ask a client to pay anything up-front to get this money. No fees. No charges. No nothing.
2. The government will not call, email, or text and ask for their Social Security number, bank account, or credit card number.
3. These reports of checks aren’t yet a reality. Anyone who tells you they can get the money right now is a scammer.

This is only one of the many ways criminals are using to scam unsuspecting people.  They are using robocalls, fake COVID-19 test kits, and fake emails from the CDC, among dozens of other methods.  We at The Callaway Bank are always trying to help clients, friends, and our community stay safe from scams.  To learn more and keep up with ways to protect yourself we recommend going to www.ftc.gov/coronavirus.

Falling for a phishing attempt can be a costly bite, so we are sharing tips, tools, and even what you should expect if The Callaway Bank contacts you about potential fraud on your account.

The COVID-19 pandemic has spurred an increase in phishing attempts to exploit current fears by fraudsters. This uptick includes fraudulent emails, voicemails, text messages (complete with malicious links), and even calls that seemingly come from your trusted financial institution, healthcare group or other federal agencies. The Callaway Bank wants you to be mindful of phishing attempts, so you don’t bite. This will help keep your accounts, identity, and peace of mind protected during this stressful time.

Tips And Tools For Fraud Prevention:

• Review your accounts daily for any transactions you don’t recognize. Immediately contact us if you see something that should not be there. Online banking makes this task quick and easy.
• Don’t share your username for online and/or mobile banking.
• If you didn’t initiate the call or feel uneasy with the call, please feel free to hang-up and contact us. Don’t worry, we will not take it personal.
• Think before you click on links and graphics.
• eAlerts There are many options for eAlerts on your accounts. These alerts are customizable to your needs and have a quick and simple setup.
• CardValet This app allows you to turn off/on your card, specify where, when, and spending limits for different merchant types. It keeps you notified of transactions in real time.
• Visit our Fraud Prevention Center for additional tips.

­­When We Send You A Fraud Text Alert They:

• Will be from a 5-digit number
• WILL NOT be from a 10-digit number resembling a phone number
• Will provide information about the suspect transaction
• WILL NOT have vague reference to a “Merchant” transaction
• Will ask you to reply to the text message with answers such as ‘yes’, ‘no’, ‘help’, or ‘stop’
• WILL NOT send or request you to click on anything
• WILL NOT request card numbers, PINs, CV2 codes, expiration dates. We already have this information.

When We Call You:

• We WILL ask questions to confirm your identity before going through the transaction history if there is fraud on your account.
• We WILL NOT request anything more than your zip code, and a ‘yes’ or ‘no’ to the transactions provided. Additional information will be requested if you confirm that a transaction is fraudulent.

Staying fraud free is the BEST way to be! If you didn’t initiate the contact be mindful of what questions you are being asked and what you are sharing. If you suspect fraud on your account, please contact us immediately. We’re here for your moments that matter.

U.S. Department of Labor Published Guidance Explaining Paid Sick Leave And Expanded Family And Medical Leave Under The Families First Coronavirus Response Act

Today, the U.S. Department of Labor’s Wage and Hour Division (WHD) announced its first round of published guidance to provide information to employees and employers about how each will be able to take advantage of the protections and relief offered by the Families First Coronavirus Response Act (FFCRA) when it takes effect on April 1, 2020.

The Callaway Bank is providing this information just as a resource for our customers during this challenging time.

DOL Info:

For more details including links to Employer and Employee Guides, and FAQs please click the following link: https://www.dol.gov/newsroom/releases/whd/whd20200324

IRS Info:

The IRS has an overview of this act, as well as more information about how the employer will get reimbursed for the mandated sick leave. Please click on the following link:

https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus

UPDATE:  March 19, 2020

Our highest priorities are the health and safety of our teams, our customers, and the well-being of the communities we serve.  Beginning Friday, March 20th, we are moving to lobby access by appointment.  This is part of a planned approach to keep overall bank operations working for the long term.

We ask that you please use our Drive-Thru service for your day to day banking needs. If you require access to your safe deposit box or in-person assistance, please call 573.642.3322 to make an appointment. We will make every effort to accommodate your needs.

Also available are our ATMs and Digital Banking services, such as Online or Mobile Banking. They provide great options for viewing account balances, transferring funds, sending money, and even depositing checks.

Please know that we are committed to staying open and serving you and our communities. We appreciate your patience during this challenging time.

How to Protect Your Account

Be cautious and aware of scammers.  There are many who are taking advantage of COVID-19 situation. Some things to watch out for:

• Fraudsters may call posing as your bank trying to get you to give up important account information. Remember, do not give out your Online Banking log in ID, account number, debit card number, PIN, expiration date, or social security number. The Callaway Bank will never call you asking for this information. We have that information already.  When in doubt, hang up and dial us at 573-642-3322 (or any of our other numbers). This way you can ensure that you are talking to The Callaway Bank.
• Scammers are sending emails posing as the Centers for Disease Control, the World Health Organization or other experts. Be careful about clicking links, opening attachments and downloading files from emails. The scammer is likely trying to put a virus or other malware on your computer or trick you into giving them your personal information.
• All of us want to help right now, however be cautious when making donations. Do not donate to anyone who asks you to do so in cash, by gift card, or by wiring money. Take your time to select a reputable charity, and if something doesn’t feel right, don’t donate.
• Ignore emails that offer a vaccine for coronavirus. There is currently no vaccine.

These are a few of the most common scams. Visit the Federal Trade Commission’s website to learn more about scams and protecting yourself.

Learn more about scams at the FTC website

Also, be sure to review your account regularly and contact us right away if you notice anything unexpected. Online Banking is a great way to keep a close eye on your accounts.

March 17, 2020 Update:

To our clients and friends, this is an update to our coronavirus (COVID-19) response plan.

We Will Stay Open

First, we want to reassure you that we will stay open.  We are going to great lengths to keep our people safe while ensuring that debit cards work, direct deposits are received, online banking is operating, and cash is available at branches and ATMs, etc.

At some point, we may decide to limit lobby access and operate through our drive-thrus, but we will stay open.  Services will continue. Our bankers will be here to help you.

We Will Help Our Clients Through This

We have developed several options for both personal and business clients who have been economically affected by the coronavirus outbreak.  Some of these options include special loan arrangements, waiving fees, and extending credit lines.  But we’ll customize the solution to your situation.  If you are experiencing financial challenges due to this situation, please reach out to your lender or personal banker.

Our Commitment To You

We take our position as a community bank seriously, and that means helping our clients and neighbors through challenges like this.  Over our 163 years as a mid-Missouri bank, we have experienced many tough times, and we’ve learned one thing in particular. We will get through this together.

♦♦♦

Bank Anytime – Anywhere

We also want you to have confidence that you can bank virtually any time or anywhere with these digital resources:

• The Callaway Bank’s Mobile App
• Mobile Check Deposit
• Online Banking Website
• Send money with Zelle®
• Bank by phone with Telebanking at 888-642-6060

Extended Banking Hours

Our Customer Care Team is open until 10 p.m. Monday-Saturday, and open until 8 p.m. on Sunday.

Text or Call our Customer Care Team at the following numbers: 

Ashland: 573.657.0849  |  Columbia: 573.447.1771  |  Fulton: 573.642.3322  |  Mokane: 573.676.5711

Toll-Free: 800.446.2265

March 12, 2020 

To our clients and friends:

Like you, we’re monitoring the latest news about the coronavirus (COVID-19). Our highest priorities are the health and safety of our teams, our customers, and the well-being of the communities we serve. We are taking precautions to ensure our branches are open and that our bankers are available in person and via our call centers.

We are closely following the Centers for Disease Control’s (CDC) as well as federal, state, and local agencies guidelines and recommendations on the steps we can take to help prevent the spread of any viruses or illnesses. Some of these steps include:

• Enhanced cleaning and sanitizing efforts in all areas while reinforcing healthy habits like proper handwashing
• We’re encouraging anyone who feels sick to stay home
• We’re limiting employee travel and meetings in favor of teleconferencing instead.
• Working remotely when possible

Bank Anytime – Anywhere

We also want you to have confidence that you can bank virtually any time or anywhere with these digital resources:

• The Callaway Bank’s Mobile App
• Mobile Check Deposit
• Online Banking Website
• Online Bill Pay
• Send money to friends with Zelle®
• Bank by phone with Telebanking at 888-642-6060

Help Minimize Illnesses

Lastly and respectfully, if you feel sick, you should stay home too. You can help prevent the spread of any illnesses by using the digital tools above, calling us, or by using our drive-thru facilities and ATMs instead of the lobbies. We appreciate your consideration of our staff.   

Extended Banking Hours

Our Customer Care Team is open until 10 p.m. Monday-Saturday, and open until 8 p.m. on Sunday.

Text or Call our Customer Care Team at the following numbers: 

Ashland: 573.657.0849  |  Columbia: 573.447.1771  |  Fulton: 573.642.3322  |  Mokane: 573.676.5711

Toll-Free: 800.446.2265

Our focus remains on keeping our employees and customers safe and well-informed while doing what we can to help minimize the potential spread of the coronavirus. Please know we have devoted significant efforts to help mitigate against possible adverse impacts from the coronavirus and will continue working hard to provide the level of service you deserve and expect. 

When you can boast a 162-year legacy, 18 months is not too long to wait to bring an exciting program to fruition. For a year and a half, The Callaway Bank’s president and CEO, Kim Barnes, lead a team of people, including the board of directors, and diligently laid the groundwork for the opportunity for employees to grow with the bank and share in its success. The result is an employee stock ownership plan (ESOP) that aligns internal and external shareholder goals and serves clients to the best of our ability.

Why create an ESOP? In short, because it creates a commonality of purpose. Employees feel more vested in their careers, so there is greater motivation to do what’s in the best interest of the client, the bank and the community as a whole. The organization benefits by aligning the goals for the employees and the company. When employees see themselves as owners, they better understand how their actions drive customer satisfaction, which results in a more successful company. By being an owner, employees have a greater reason to be engaged and work together for the client’s benefit.

Commitment to Our Employees

How, exactly, did we fulfill this goal of becoming an employee and investor-owned entity? Essentially, we invested significant energy creating an ESOP and then connected it to our corporate 401(k) program, which is referred to as a KSOP.

Of course, the concept of offering employees a 401(k) is not new. However, many companies don’t also have an ESOP and fewer link it to their 401(k) plan. Our 401(k) options historically included a company match— even for part-time employees — and offered traditional stock market investment options. Today, this solid benefit has become more robust by offering employees a chance to invest a portion of their 401(k) contributions in company stock alongside the stock market investment choices. Employees benefit from the option to not only invest in their own financial future, but their company’s future, too.

Certainly, ownership opportunities have always been available to anyone interested in The Callaway Bank. In fact, our shareholders are mostly local members of the community, including some current and former employees. Yet Barnes and the board felt it was worthwhile to go a step further and give employees more opportunity to have a stake in ownership. To further show its commitment to the effort, the board made a jump start contribution to the 100+ employees at the time. Going forward, new team members can participate as well.

The Role of the ESOP in Modern Banking

ESOPs are not necessarily rare in banking, but more community banks offer them than big banks. Why? Community banks tend to make decisions for the betterment and long term well-being of their communities, which means embracing tools and strategies that support long-term success.

Our objective with The Callaway Bank ESOP is to position our financial institution to best meet the opportunities and challenges of today’s world. Not only have employee owned companies proven to be more resilient 1, but they also foster a culture of creative ownership. Individuals who believe in our company’s mission tend to gravitate toward working with us (and staying with us), which bodes well for employee retention, advancement, and engagement.

When employees are rewarded for staying with the company longer, it encourages them to go the extra mile to make their job more than “just a job.” They’re also surrounded by other team members who are just as passionate about their roles in the organization, providing a culture of ownership where everyone works together in the best interest of the community.

From our customers’ perspective, the ESOP will help The Callaway Bank perform at its best by bringing a commonality of purpose to the company and the employees — already, we’ve seen an increase in the level of motivation and creativity among employees as they embrace their stake as local owners.

In addition, having an ESOP reinforces the idea that The Callaway Bank takes community commitment seriously. For 162 years, we have valued our independent, local decision-making, and providing ownership to our employees proves and reinforces our commitment to longterm success for everyone in the equation.

For many generations, our outside supporters, customers, and team members have been our bedrock. The decision to move to an ESOP will only deepen our foundation, enabling us to focus our decisions on what makes sense for the neighbors who trust us with their financial aspirations. And who better to have a vested interest in these decisions than the people who call this community home?

Sources:
1 hbr.org, Profit Sharing Boosts Employee Productivity and Satisfaction.