ePioneer                                                                                                             SUMMER 2015
Pictured above from left to right: Laurae Mallinson, Carla Crabb, Sue Mogensen, and Jean Marcon (all tellers at our main office).

Dear Customer,


In this newsletter we include an article describing the Federal Reserve Bank (The Fed) and the role it, our nation's Central Bank, plays in setting and moderating interest rates. The financial world, for almost seven years, has been waiting, watching and wondering when the low interest rate cycle will change. Just think about what we have endured over the seven year period. Now we are encouraged in Rusk County to see more available jobs and the improving local economy.


THE QUESTION: "What happens next?" keeps the experts busy. "What can you do?" may be the better question. As always, the safe practice is to take stock of what you know to be within your control and take decisive action on those matters. You can't control what the interest rates will do, but you do control the timing of when you will seek financing. If you have been putting off buying and borrowing, maybe now is the best time to take action while rates are low. Your loan officer at Pioneer Bank would welcome the chance to discuss your loan needs and can help you review your options. Also, your lender will understand how to calculate your ability to repay and can help you see if the loan is right for you.

We will work to earn your business every day. Thank you for choosing Pioneer Bank.



James E. Loe

Every summer, we like to invite high school graduates and soon-to-be graduates, as well as college students, to join our team here at Pioneer Bank of Wisconsin. This year we would like to welcome Cole Crabb, a 2013 graduate of Flambeau High. He is currently an accounting major at UW-River Falls. We would also like to welcome back Nicole Mateski, a recent 2015 graduate of Flambeau High. She will be attending UW-Oshkosh for personal finance. Don't forget to say hello!


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If you've ever paid attention to news stories about the economy, you've probably heard about "The Fed." But, do you know what the Fed is and how it impacts you? Learning a bit more about how the central bank of the United States works and how it affects your finances can help you make long-term plans for big financial decisions. Understanding the Fed can help give you an idea of what the economy is currently like, what's going to happen, and how it affects your business, your job, and/or your investments. Here are a few basic facts about the Fed you should be aware of:


It is not a government agency.
The Fed is owned by private banks and operates independently of the U.S. government, though its Board of Governors are appointed by the President. It has a franchise to manage the country's economy as long as the Fed continues to fulfill its three mandates: maximize employment, stabilize prices and moderate long-term interest rates.


It sets important interest rates.

The main way the Fed impacts the economy is by setting the Federal Funds Interest Rate, which is the basis for every other interest rate out there. In general, when the Fed lowers interest rates, the goal is to stimulate the economy. Conversely, they usually raise rates when they want to slow down the economy. The Fed manages these rates through the Federal Open Market Committee (FOMC), which meets eight times each year. After each meeting, the FOMC issues a press release about the general U.S. economy and whether or not the Fed will raise interest rates.


The Fed Funds rate does impact consumers.
Even though consumers do not directly borrow money from the Fed, the financial institutions that provide their car loans and mortgages do. Since the Fed Funds rate is the basis for other rates (by being the cost of what your bank has to pay in order to get money) raising and lowering it affects the rates you, the consumer, can get from your bank. So, if you're in the market to buy a house and you hear that the Fed may be raising interest rates soon, you know to act quickly in order to secure a lower interest rate for your mortgage.


What's going to happen next?
While no one knows exactly when the Fed will raise interest rates, it will happen eventually. While rates are still at record lows (near zero), it is a good time to borrow money or refinance your mortgage. By comparison, in the early '80s the Federal Funds Rate was nearly 20 percent. Today, that would be like buying a house with a credit card. When rates do rise, mortgages and car loans will become more expensive. However, you'll also earn more interest on your savings account and any interest-bearing investments will have higher yields.


By keeping these basic concepts in mind, consumers can create a better financial plan for themselves. Be sure to speak with your local banker if you want to learn more about the Fed.


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1. Vacation locally. You'll save on travel costs.


2. Pack your own food.


3. Travel during off-peak times. The deals are better.


4. If you still want a full-blown vacation, find something all inclusive. Cruises are a great choice!


5. If you fly a lot, find an airline that offers frequent flyer miles. You can also find hotels that offer free hotel stays after so many stays.


6. Consider driving to your destination.


7. When you've reached your destination, consider walking around instead of taking a cab or the bus. You'll discover new things this way.


8. Talk to  the locals to find out some of the best lesser-known cites to see and places to eat.


9. Ask about discounts (for example: children, senior, student, etc.).


10. Airfare is least expensive on Tuesday.


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June Dairy Days

Thursday & Friday, June 18th & 19th, 2015

Join us at our main location or our branch location, or both, for a variety of cheese with crackers and, of course, ice cream! Salute our dairy farmers!

Annual Senior Picnic

Wednesday, June 24, 2015  |  NOON  |  Beach Pavilion, Memorial Park


Our Annual Senior Picnic is just around the corner and we are excited to gather our family, good friends, and loyal bank customers for another year of fun! Enjoy yummy summertime food while winning prizes and listening to music! See you soon!



Main Office

200 Miner Avenue West
P.O. Box 169
Ladysmith, WI 54848



715.532.3728 FAX


Monday - Thursday

Lobby  |  8:30 - 4:00

Drive Up  |  8:30 - 5:00


Lobby  |  8:30 - 4:30

Drive Up  |  8:30 - 5:00



Drive Up  |  8:30 - 12:00



400 W 9th Street North 
P.O. Box 169
Ladysmith, WI 54848



715.532.9946 FAX


Monday - Friday

10:00 - 6:00


8:00 - 1:00
Pioneer Bank of Wisconsin | 200 W Miner Ave | Ladysmith, WI 54848 | 715.532.5551