<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 11 - K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
-------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
------------------- ---------------------
Commission file number 000-14553 [F&M Bancorporation, Inc.]
--------------
A. Full title of the plan and the address of the plan, if different from that of
the issuer named below:
F&M BANCORPORATION, INC. RETIREMENT AND SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
F&M BANCORPORATION, INC.
ONE BANK AVENUE
KAUKAUNA, WI 54130
<PAGE> 2
F&M EMPLOYEES' RETIREMENT AND SAVINGS PLAN AND TRUST
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
Years Ended December 31, 1998 and 1997
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
INDEPENDENT AUDITOR'S REPORT..............................................................3
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits......................................4
Statements of Changes in Net Assets Available for Benefits...........................6
Notes to Financial Statements........................................................8
SUPPLEMENTAL SCHEDULES
Schedule 1 - Item 27a - Schedule of Assets Held for Investment Purposes.............16
Schedule 2 - Item 27d - Schedule of Reportable (5%) Transactions....................18
CONSENT OF WIPFLI ULLRICH BERTELSON LLP......................................... EXHIBIT 23
</TABLE>
<PAGE> 3
[WIPFLI ULLRICH BERTELSON LLP LOGO]
INDEPENDENT AUDITOR'S REPORT
Board of Trustees
F&M Employees' Retirement and
Savings Plan and Trust
Kaukauna, Wisconsin
We have audited the accompanying statements of net assets available for benefits
of F&M Employees' Retirement and Savings Plan and Trust as of December 31, 1998
and 1997, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1998 and 1997, and the changes in net assets available for benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audit of the Plan's financial statements as of and for the year ended
December 31, 1998, was performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedules of
assets held for investment purposes and reportable transactions are presented
for the purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audit of the basic
financial statements for the year ended December 31, 1998, and, in our opinion,
are fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ Wipfli Ullrich Bertelson LLP
Wipfli Ullrich Bertelson LLP
June 7, 1999
Appleton, Wisconsin
3
<PAGE> 4
F&M EMPLOYEES' RETIREMENT AND SAVINGS PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth
Stable Asset Conservative Balance Small-Cap International Equity Index
Fund Balance Fund Fund Equity Fund Equity Fund Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Contributions receivable:
Employer $ 113,828 $ 132,910 $ 218,674 $ 161,451 $ 87,168 $ 132,968
Employee 0 0 1,408 0 0 0
Investments 1,854,765 3,015,740 6,418,015 3,108,964 1,326,505 3,428,233
Interest and dividends receivable 31 36 85 74 55 7,228
Distributions receivable 409 178 681 0 1,135 0
- -------------------------------------------------------------------------------------------------------------------------------
Total assets 1,969,033 3,148,864 6,638,863 3,270,489 1,414,863 3,568,429
- -------------------------------------------------------------------------------------------------------------------------------
Liabilities
Merged assets in transit 171,237 112,970 350,573 193,470 39,516 693,162
- -------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits $ 1,797,796 $ 3,035,894 $ 6,288,290 $ 3,077,019 $ 1,375,347 $ 2,875,267
===============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
International
Value Equity Employer Participant
Fund Stock Account Loans Total
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Contributions receivable:
Employer $ 0 $ 668,998 $ 0 $ 1,515,997
Employee 0 0 0 1,408
Investments 0 6,025,931 41,962 25,220,115
Interest and dividends receivable 0 176 0 7,685
Distributions receivable 0 0 0 2,403
- -------------------------------------------------------------------------------------------------------------------------------
Total assets 0 6,695,105 41,962 26,747,608
- -------------------------------------------------------------------------------------------------------------------------------
Liabilities
Merged assets in transit 0 88,624 0 1,649,552
- -------------------------------------------------------------------------------------------------------------------------------
Net assets available for $ 0 $ 6,606,481 $ 41,962 $25,098,056
benefits
===============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
F&M EMPLOYEES' RETIREMENT AND SAVINGS PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Smith Barney Corporate Trust Company
-------------------------------------------------------------------------------------
Growth
Stable Asset Conservative Balance Small-Cap International Equity Index
Fund Balance Fund Fund Equity Fund Equity Fund Fund
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Contributions receivable:
Employer $ 121,365 $ 116,443 $ 185,961 $ 139,173 $ 0 $ 40,281
Employee 1,567 2,815 4,999 4,945 0 2,015
Investments 1,682,496 2,734,148 4,419,290 2,555,621 0 850,817
Interest and dividends receivable 0 0 0 0 0 0
Distributions receivable 966 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits $ 1,806,394 $ 2,853,406 $ 4,610,250 $ 2,699,739 $ 0 $ 893,113
========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
International
Value Equity Employer Participant
Fund Stock Account Loans Total
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Contributions receivable:
Employer $ 79,791 $ 452,434 $ 0 $ 1,135,448
Employee 2,648 3,995 0 22,984
Investments 1,371,722 5,617,367 36,410 19,267,871
Interest and dividends receivable 0 207 0 207
Distributions receivable 0 0 0 966
- ------------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits $ 1,454,161 $ 6,074,003 $ 36,410 $20,427,476
========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
F&M EMPLOYEES'RETIREMENT AND SAVINGS PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth
Stable Asset Conservative Balance Small-Cap International Equity Index
Fund Balance Fund Fund Equity Fund Equity Fund Fund
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employer $ 113,828 $ 132,910 $ 218,674 $ 161,451 $ 87,168 $ 132,968
Employee 58,291 118,150 204,281 186,970 99,624 136,774
Rollover 7,621 5,156 10,181 35,231 109 4,232
Interest and dividends 1,340 6,294 10,719 6,986 7,022 42,220
Net appreciation
(depreciation)
of investments 98,107 199,951 597,010 8,266 (167,847) 488,599
Transfers from other funds 5,165 3,679 2,460 59,093 1,466,422 761,052
Transfers from mergers of
plans 288,841 305,470 585,369 492,946 398,425 537,871
- --------------------------------------------------------------------------------------------------------------------
Total additions 573,193 771,610 2,628,694 950,943 1,890,923 2,103,716
- --------------------------------------------------------------------------------------------------------------------
Deductions:
Employee benefits and
withdrawals 216,536 424,086 668,856 274,303 140,773 97,834
Trustee fees 3,907 9,151 15,660 8,820 4,929 4,910
Transfers to other funds 361,348 155,885 266,138 290,540 369,874 18,818
- --------------------------------------------------------------------------------------------------------------------
Total deductions 581,791 589,122 950,654 573,663 515,576 121,562
- --------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (8,598) 182,488 1,678,040 377,280 1,375,347 1,982,154
Net assets available for
benefits at beginning 806,394 853,406 4,610,250 2,699,739 0 893,113
- --------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits at end $ 1,797,796 $ 3,035,894 $ 6,288,290 $3,077,019 $ 1,375,347 $ 2,875,267
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
International Employer
Value Equity Stock Participant Total
Fund Account Loans
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Contributions:
Employer $ 0 $ 668,998 $ 0 $ 1,515,997
Employee 0 261,155 0 1,065,245
Rollover 0 9,746 0 72,276
Interest and dividends 0 160,438 4,950 239,969
Net appreciation
(depreciation)
of investments 0 (1,236,825) 0 987,261
Transfers from other funds 0 624,915 35,101 2,957,887
Transfers from mergers of
plans 0 566,931 10,157 3,186,010
- --------------------------------------------------------------------------------------------------------------------
Total additions 0 1,055,358 50,208 10,024,645
- --------------------------------------------------------------------------------------------------------------------
Deductions:
Employee benefits and
withdrawals 0 502,513 12,087 2,336,988
Trustee fees 0 11,813 0 59,190
Transfers to other funds 1,454,161 8,554 32,569 2,957,887
- --------------------------------------------------------------------------------------------------------------------
Total deductions) 1,454,161 522,880 44,656 5,354,065
- --------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (1,454,161) 532,478 5,552 4,670,580
Net assets available for
benefits at beginning 1,454,161 6,074,003 36,410 20,427,476
- --------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits at end $ 0 $ 6,606,481 $ 41,962 $25,098,056
====================================================================================================================
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
F&M EMPLOYEES'RETIREMENT AND SAVINGS PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Smith Barney Corporate Trust Company
-------------------------------------------------------------------------------------
Growth
Stable Asset Conservative Balance Small-Cap International Equity Index
Fund Balance Fund Fund Equity Fund Equity Fund Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employer $ 121,365 $ 116,443 $ 185,961 $ 139,173 $ 0 $ 40,281
Employee 72,500 102,713 183,388 146,563 20,294 26,676
Rollover 1,544 5,821 5,961 8,029 67 105
Interest and dividends 5,848 0 0 0 0 0
Net appreciation
(depreciation) in fair 99,453 425,856 884,673 401,589 (37,662) 27,402
Transfers from other
funds 20,619 316,690 461,180 296,881 80,673 801,107
Transfers from mergers
of plans 388,770 7,226 9,287 3,944 1,972 0
- --------------------------------------------------------------------------------------------------------------------------
Total additions 710,099 974,749 1,730,450 996,179 65,344 895,571
- --------------------------------------------------------------------------------------------------------------------------
Deductions:
Employee benefits and withdrawals 213,867 181,950 180,912 74,469 7,796 0
Trustee fees 4,702 20,936 34,016 18,210 2,320 1,409
Transfers to other funds 1,763,346 243,447 595,486 72,953 1,140,041 1,049
- --------------------------------------------------------------------------------------------------------------------------
Total deductions 1,981,915 446,333 810,414 165,632 1,150,157 2,458
- --------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (1,271,816) 528,416 920,036 830,547 (1,084,813) 893,113
Net assets available for
benefits at beginning 3,078,210 2,324,990 3,690,214 1,869,192 1,084,813 0
Net assets available for
benefits at end $ 1,806,394 $ 2,853,406 $ 4,610,250 $ 2,699,739 $ 0 $ 893,113
==========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
International Employer
Value Equity Stock Participant Total
Fund Account Loans
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Contributions:
Employer $ 79,791 $ 452,434 $ 0 $ 1,135,448
Employee 56,579 127,276 0 735,989
Rollover 6,782 4,963 0 33,272
Interest and dividends 0 104,042 2,304 112,194
Net appreciation
(depreciation) in fair 38,297 1,764,477 0 3,604,085
Transfers from other
funds 1,361,072 578,311 27,167 3,943,700
Transfers from mergers
of plans 0 10,939 0 422,138
- --------------------------------------------------------------------------------------------------------------------------
Total additions 1,542,521 3,042,442 29,471 9,986,826
- --------------------------------------------------------------------------------------------------------------------------
Deductions:
Employee benefits and withdrawals 39,594 124,204 0 822,792
Trustee fees 6,129 8,487 0 96,209
Transfers to other funds 42,637 84,741 0 3,943,700
- --------------------------------------------------------------------------------------------------------------------------
Total deductions 88,360 217,432 0 4,862,701
- --------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) 1,454,161 2,825,010 29,471 5,124,125
Net assets available for
benefits at beginning 0 3,248,993 6,939 15,303,351
- --------------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits at end $ 1,454,161 $ 6,074,003 $ 36,410 $20,427,476
==========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
F&M EMPLOYEES'RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
METHOD OF ACCOUNTING
The financial records of F&M Employees' Retirement and Savings Plan
and Trust (the "Plan") are maintained on the accrual basis of
accounting in accordance with generally accepted accounting
principles.
INVESTMENT VALUATION
Investments are stated at fair value. Common stocks including F&M
Bancorporation, Inc. common stock and government obligations are
valued at the last reported bid price. Mutual funds are carried at
current value which represents the quoted market values of the
underlying investments. Guaranteed interest contracts are stated at
contract value which represents contributions, plus interest, less
administrative expenses. Short-term securities are carried at cost
which approximates fair value. For investments in securities which do
not have an established market, the trustee of the Plan establishes a
fair value.
Unrealized appreciation or depreciation is reflected for the year in
the statement of changes in net assets available for benefits. Gains
or losses on security transactions are recorded as the difference
between proceeds received and the carrying value of the investments.
Interest income is recognized on the accrual method, and dividend
income is recorded on the ex-dividend date.
MERGED ASSETS IN TRANSIT
Merged assets in transit represent assets transferred into the Plan
from other retirement plans offered at recently acquired subsidiaries
of F&M Bancorporation, Inc. These other plans were merged into the
Plan effective January 1, 1999. Assets transferred prior to January 1,
1999, are shown as a liability as they are not plan net assets at
December 31, 1998.
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally
accepted accounting principles requires the plan administrator to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results may differ from these
estimates.
8
<PAGE> 9
F&M EMPLOYEES'RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2 PLAN DESCRIPTION
The following description of F&M Employees' Retirement and Savings
Plan and Trust provides only general information. Participants should
refer to the Plan Agreement for a more complete description of the
Plan's provisions.
GENERAL
The Plan is a defined contribution plan covering substantially all
full-time employees of F&M Bancorporation, Inc. and its various
subsidiaries who have completed 1,000 hours within six months of the
plan year. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974. The Plan is administered at
the direction of a committee consisting of three individuals appointed
by the Board of Directors of F&M Bancorporation, Inc.
EMPLOYER CONTRIBUTION
The employer's annual contribution is discretionary and is determined
by the Board of Directors of F&M Bancorporation, Inc.
EMPLOYEE CONTRIBUTIONS
Participants may elect to have a portion of their annual compensation
contributed on their behalf. Amounts contributed are deducted from
gross wages for each payroll period and deposited with the trustee.
EMPLOYER MATCHING
The employer makes a discretionary matching contribution based on
employee salary deferral contributions up to the first 6% of employee
compensation.
9
<PAGE> 10
F&M EMPLOYEES'RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2 PLAN DESCRIPTION (Continued)
PARTICIPANTS' ACCOUNTS
Each participant's account is credited with the contributions which
are defined above, plan earnings (allocated based on adjusted
beginning of year account balances), and forfeitures of terminated
participants' nonvested accounts.
Participants may borrow from their fund accounts a minimum of $1,000
to a maximum equal to the lesser of $50,000 or 50% of their vested
account balance. Loan terms range from one to five years. The loans
are secured by the balance in the participant's account and bear
interest at a rate commensurate with similar length loans made by the
trustee. Principal and interest are paid ratably. Whenever possible,
repayment will be through monthly payroll deductions.
On April 1, 1998, the Plan transferred its investments from Smith
Barney Corporate Trust Company to F&M Trust Services. F&M Trust
Services is a subsidiary of F&M Bancorporation, Inc., the Plan's
sponsor. The general investment options available to participants did
not change with the introduction of the new trustee. The specific
investments held within each general investment option did change when
the assets were transferred to F&M Trust Services.
The Plan allows participants to select their investment options from
one or more of the following funds:
Stable Asset Fund - Invested primarily in contracts (including
guaranteed investment contracts [GICs], alternative synthetic GIC
contracts, and bank investment contracts [BICs]) issued by
high-quality companies and banks, and in cash equivalents.
Conservative Balanced Fund - Invested primarily in long-term
bonds, cash equivalents, and equity investments.
Growth Balanced Fund - Invested primarily in a diversified
portfolio of growth stocks, bonds with varying maturities up to
30 years, and cash equivalents.
Small-Cap Equity Fund - Invested primarily in growth stocks of
companies of varying size and in cash equivalents.
International Equity Fund - Invested primarily in a diversified
portfolio of international equities as evidenced by American
Depository Receipts (ADRs). ADRs trade as U.S. share equivalents
backed by specific shares of the underlying foreign security.
10
<PAGE> 11
F&M EMPLOYEES'RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2 PLAN DESCRIPTION (Continued)
PARTICIPANTS' ACCOUNTS (Continued)
Equity Index Fund - Invested in all 500 of the stocks in the
Standards & Poor's 500 Composite Stock Index.
International Value Equity Fund - Invested primarily in foreign
entities which provide long-term capital growth.
Employer Stock Account - Contributions to the employer stock
account are used to purchase F&M Bancorporation, Inc. common
stock. This account also carries some balances in
interest-bearing mutual funds. Beginning in 1996, participants
have the option of investing their contributions and the
employer's discretionary contributions in the employer stock
account. All matching contributions continue to be invested in
this account.
Participant Loans - Invests in loans to participants.
VESTING
The employer discretionary contribution portion of each participant's
account balance becomes 100% vested after five years of credited
service. The employees' salary deferral contribution and the employer
matching contribution portion of each participant's account balance is
100% vested immediately.
PLAN BENEFITS
Plan benefits are available at normal retirement (age 63), deferred
retirement, early withdrawal, disability retirement, death, or
termination of employment with vested interests.
Participants may elect to receive benefit payments in the form of a
lump-sum distribution or in installments.
PLAN EXPENSES
Investment advisory fees charged by the trustee are paid out of plan
assets. Administrative expenses and fidelity insurance premiums are
paid by F&M Bancorporation, Inc., the Plan's sponsor.
11
<PAGE> 12
F&M EMPLOYEES' RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2 PLAN DESCRIPTION (Continued)
PLAN TERMINATION
The employer intends to continue the Plan indefinitely; however, the
employer reserves the right to terminate the Plan at any time. In the
event of termination, all amounts credited to participants' accounts
will be distributed to participants in accordance with the Plan's
provisions.
NOTE 3 INVESTMENTS
A summary of investments at December 31 follows:
<TABLE>
<CAPTION>
Investments at Fair Value as
Determined by Quoted Market Price 1998 1997
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common trust funds $ 11,843,896 $ 0
Common stock 5,913,936 5,594,629
Insurance contracts 137,522 131,925
Mutual funds 7,282,799 13,504,907
- ---------------------------------------------------------------------------------------------------------------------
Totals 25,178,153 19,231,461
- ---------------------------------------------------------------------------------------------------------------------
Investments at Cost Which
Approximate Fair Value
- ---------------------------------------------------------------------------------------------------------------------
Participant loans 41,962 36,410
- ---------------------------------------------------------------------------------------------------------------------
Total investments $ 25,220,115 $19,267,871
=====================================================================================================================
</TABLE>
12
<PAGE> 13
F&M EMPLOYEES' RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 3 INVESTMENTS (Continued)
During 1998 and 1997, the Plan's investments (including investments
bought or sold during the year as well as those held at year-end)
appreciated (depreciated) as follows:
<TABLE>
<CAPTION>
NET APPRECIATION (DEPRECIATION) IN FAIR VALUE
Investments at Fair Value as Years Ended December 31,
-----------------------------------------
Determined by Quoted Market Price 1998 1997
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
Common stock ($1,236,825) $ 1,764,477
Mutual funds 2,224,086 1,839,608
- ----------------------------------------------------------------------------------------------------
Net appreciation $ 987,261 $ 3,604,085
====================================================================================================
</TABLE>
The following is a schedule of investments as of December 31, 1998 and
1997, that individually represent 5% or more of the Plan's net assets:
<TABLE>
<CAPTION>
1998
--------------------------------------
Asset Fair Percent of
Value Net Assets
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
F&M Trust Services:
Stable Asset Fund $1,541,814 6.1
Conservative Balanced Fund 2,892,759 11.5
Growth Balanced Fund 6,050,281 24.1
Small-Cap Equity Fund 2,900,856 11.6
Vanguard Index Tr 500 Portfolio 2,707,544 10.8
Jacobs International Equity 1,270,376 5.1
Federated Governmental Obligations Fund 1,733,358 6.9
F&M Bancorporation, Inc. Common Stock 5,913,936 23.6
</TABLE>
13
<PAGE> 14
F&M EMPLOYEES'RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 3 INVESTMENTS (Continued)
<TABLE>
<CAPTION>
1997
---------------------------------------
Asset Fair Percent of
Value Net Assets
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Smith Barney Corporate Trust Company:
Stable Asset Fund $1,550,571 7.6
Conservative Balanced Fund 2,734,148 13.4
Growth Balanced Fund 4,419,290 21.6
Small-Cap Equity Fund 2,555,621 12.5
International Value Equity Fund 1,371,722 6.7
F&M Bancorporation, Inc. Common Stock 5,594,629 27.4
</TABLE>
NOTE 4 TRANSACTIONS WITH PARTIES-IN-INTEREST
F&M Bancorporation, Inc. and its subsidiaries serve as sponsors of the
Plan. The Plan had the following transactions with these
parties-in-interest:
1998
- Purchased 44,400 shares of F&M Bancorporation, Inc. common stock
valued at $1,774,740 with employee and employer contributions.
- Received 17,568 shares of F&M Bancorporation, Inc. as a stock
dividend.
- Distributed 5,463 shares of F&M Bancorporation, Inc. common stock
to participants.
- Sold 0.4 shares of F&M Bancorporation, Inc. common stock valued at
a cost of $10.
- Recognized dividend income totaling $152,969 from F&M
Bancorporation, Inc. common stock.
14
<PAGE> 15
F&M EMPLOYEES' RETIREMENT
AND SAVINGS PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 4 TRANSACTIONS WITH PARTIES-IN-INTEREST (Continued)
1997
- Purchased 32,600 shares of F&M Bancorporation, Inc. common stock
valued at $1,035,655 with employee and employer contributions.
- Received 11,796 shares of F&M Bancorporation, Inc. as a stock
dividend.
- Recognized dividend income totaling $101,566 from F&M
Bancorporation, Inc. common stock.
NOTE 5 RECONCILIATION TO FORM 5500
For 1998 and 1997, there are account classification differences
between these accompanying financial statements and Items 31 and 32 of
Form 5500, which were prepared by the trustee. These financial
statements balance in total with the Form 5500.
NOTE 6 TAX-EXEMPT STATUS OF THE PLAN
On November 18, 1996, the Internal Revenue Service declared that the
Plan is qualified pursuant to Section 401 of the Internal Revenue
Code. Plan management believes any amendments and events since the
effective date of the last Internal Revenue Service determination
letter do not affect the qualified status of the Plan. Accordingly,
the Plan is exempt from federal and state income taxes under current
provisions of their respective laws.
15
<PAGE> 16
F&M EMPLOYEES' RETIREMENT AND SAVINGS PLAN AND TRUST
Plan's EIN #39-1365327 Plan #002
SCHEDULE 1 - ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
IDENTITY OF ISSUE, BORROWER, LESSOR, OR DESCRIPTION OF INVESTMENTS INCLUDING MATURITY DATE, COST CURRENT VALUE
SIMILAR PARTY RATE OF INTEREST, COLLATERAL, PAR OR MATURITY VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
F&M Trust Services 1,733,358 units - Federated Governmental Obligation Fund 1,733,358 $ 1,733,358
F&M Trust Services 284,161 units - Conservative Balanced Fund 2,841,371 2,892,759
F&M Trust Services 501,682 units - Growth Balanced Fund 5,023,732 6,050,281
F&M Trust Services 315,997 units - Small-Cap Equity Fund 3,150,651 2,900,856
F&M Trust Services 29,707 units - Reserve Deposit Account 29,707 29,707
Vanguard 23,761 units - Vanguard Index Tr 500 Portfolio 2,440,182 2,707,544
UAM Trust Company 138,513 units - Jacobs International Equity 1,627,278 1,270,376
Firstar 77,323 units - Stable Asset Fund 1,501,048 1,541,814
F&M Bancorporation, Inc. 195,502 shares - Common Stock 4,745,909 5,913,936
Travelers Insurance Company 137,522 units - Annuity Contract 137,522 137,522
Participant Loans 41,962 41,962
- --------------------------------------------------------------------------------------------------------------------------------
Total assets held for investment purposes $23,272,720 $25,220,115
================================================================================================================================
</TABLE>
See Independent Auditor's Report
16
<PAGE> 17
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Identity of Party Involved Description of Asset Purchase Price
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
F&M Trust Services 1,873,122 units - Federated Governmental Obligation Fund $1,873,122
F&M Trust Services 139,765 units - Federated Governmental Obligation Fund N/A
F&M Trust Services 318,300 units - Conservative Balanced Fund 3,182,749
F&M Trust Services 34,139 units - Conservative Balanced Fund N/A
F&M Trust Services 564,439 units - Growth Balanced Fund 5,651,826
F&M Trust Services 62,757 units - Growth Balanced Fund N/A
F&M Trust Services 344,758 units - Small-Cap Equity Fund 3,437,799
F&M Trust Services 28,761 units - Small-Cap Equity Fund N/A
Firstar 80,673 units - Stable Asset Fund 1,566,091
Firstar 3,351 units - Stable Asset Fund N/A
UAM Trust Company 159,615 units - Jacobs International Equity Fund 1,875,184
UAM Trust Company 20,760 units - Jacobs International Equity Fund N/A
Vanguard 24,461 units - Vanguard Index Tr 500 Portfolio 2,510,688
Vanguard 989 units - Vanguard Index Tr 500 Portfolio N/A
F&M Bancorporation, Inc. 44,400 shares - Common Stock 1,774,740
Smith Barney Corporate Trust Company 22,796 units - Stable Asset Fund 317,498
Smith Barney Corporate Trust Company 134,443 units - Stable Asset Fund N/A
Smith Barney Corporate Trust Company 7,223 units - Conservative Balanced Fund 317,499
Smith Barney Corporate Trust Company 69,443 units - Conservative Balanced Fund N/A
Smith Barney Corporate Trust Company 7,088 units - Growth Balanced Fund 531,094
Smith Barney Corporate Trust Company 66,904 units - Growth Balanced Fund N/A
Smith Barney Corporate Trust Company 5,698 units - Small-Cap Equity Fund 583,921
Smith Barney Corporate Trust Company 30,918 units - Small-Cap Equity Fund N/A
Smith Barney Corporate Trust Company 47,394 units - Equity Index Fund 728,459
Smith Barney Corporate Trust Company 102,938 units - Equity Index Fund N/A
Smith Barney Corporate Trust Company 34,059 units - International Value Equity Fund 423,318
Smith Barney Corporate Trust Company 143,953 units - International Value Equity Fund N/A
Smith Barney Corporate Trust Company 2,859,138 units - Reserve Deposit Account 2,859,138
Smith Barney Corporate Trust Company 2,881,876 units - Reserve Deposit Account N/A
</TABLE>
17
<PAGE> 18
F&M EMPLOYEES' RETIREMENT
AND SAVINGS PLAN AND TRUST
Plan's EIN #39-1365327 Plan #002
SCHEDULE 2 - ITEM 27D - SCHEDULE OF REPORTABLE (5%) TRANSACTIONS
Year Ended December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Current Value of
Expense Incurred Asset on
Selling Price Lease Rental With Transaction Cost of Asset Transaction Date Net Gain or (Loss)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ N/A $ N/A $ 0 $ 1,873,122 $ 1,873,122 $ N/A
139,765 N/A 0 139,765 139,765 0
N/A N/A 0 3,182,749 3,182,749 N/A
342,300 N/A 0 341,378 342,300 922
N/A N/A 0 5,651,826 5,651,826 N/A
640,000 N/A 0 628,094 640,000 11,906
N/A N/A 0 3,437,799 3,437,799 N/A
245,300 N/A 0 287,148 245,300 (41,848)
N/A N/A 0 1,566,091 1,566,091 N/A
66,300 N/A 0 65,043 66,300 1,257
N/A N/A 0 1,875,184 1,875,184 N/A
191,527 N/A 0 243,892 191,527 (52,365)
N/A N/A 0 2,510,688 2,510,688 N/A
104,418 N/A 0 101,475 104,418 2,943
N/A N/A 0 1,774,740 1,774,740 N/A
N/A N/A 0 317,498 317,498 N/A
1,918,556 N/A 0 1,733,581 1,918,556 184,975
N/A N/A 0 317,499 317,499 N/A
3,199,213 N/A 0 2,237,949 3,199,213 961,264
N/A N/A 0 531,094 531,094 N/A
5,508,826 N/A 0 3,419,129 5,508,826 2,089,697
N/A N/A 0 583,921 583,921 N/A
3,439,344 N/A 0 2,370,673 3,439,344 1,068,671
N/A N/A 0 728,459 728,459 N/A
1,794,706 N/A 0 1,551,903 1,794,706 242,803
N/A N/A 0 423,318 423,318 N/A
2,040,370 N/A 0 1,766,722 2,040,370 273,648
N/A N/A 0 2,859,138 2,859,138 N/A
2,881,876 N/A 0 2,881,876 2,881,876 0
</TABLE>
See Independent Auditor's Report.
18
<PAGE> 19
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
F&M BANCORPORATION, INC.
RETIREMENT AND SAVINGS PLAN
Date: June 23, 1999 /s/ Daniel E. Voet
--------------------------------
Daniel E. Voet
Plan Administrative Committee Member
<PAGE> 1
EXHIBIT 23
[Wipfli Ullrich Bertelson LLP
CPAs Consultants Advisors
Letterhead]
CONSENT OF WIPFLI ULLRICH BERTELSON LLP
We consent to the incorporation by reference in F&M Bancorporation, Inc.'s
Registration Statement on Form S-8 (Registration Statement No. 333-01937) of our
report dated June 7, 1999, related to the consolidated financial statements of
the F&M Employees' Retirement and Savings Plan and Trust (the "Plan") as of, and
for the years ended, December 31, 1998 and 1997, and the supplemental schedules,
which report appears in the December 31, 1998, Annual Report on Form 11-K of the
Plan.
/s/ Wipfli Ullrich Bertelson LLP
June 23, 1999
Appleton, Wisconsin
