The number of Americans taking loans or hardship withdrawals from their 401(k) retirement savings plans continues to rise, according to Fidelity Investments.

New loans from 401(k) accounts have risen – about 11 percent of people with plans have taken loans from them in the last 12 months, up from nine percent one year ago. Those with outstanding loans from their 401(k) plans has also risen two percentage points in the same time, to 22 percent.

“We recognize that for some, taking a loan or hardship withdrawal from their 401(k) may be their only option because it’s their only form of savings,” said James MacDonald, president of workplace investing with Fidelity. “However, we want to make sure that before workers tap their retirement accounts prematurely, they are fully educated about both the penalty that may be incurred and the long-term implications for their retirement.”

As of the second quarter, 2.2 percent of Fidelity’s active participants took a hardship withdrawal, up from two percent one year earlier. Forty-five percent of those who took hardship withdrawals one year ago also took withdrawals from their 401(k) accounts within the last 12 months, the survey says.

Most people that took hardship withdrawals did so to avoid foreclosure or eviction, pay for college or make a down payment on a home, according to the Fidelity report.

Despite the rising loans and hardship withdrawals, savings through 401(k) plans continues to rise – the average 401(k) account balance is now $61,800, a 15 percent increase from one year ago, Fidelity says. The average deferral rate is eight percent.

“The majority of participants continue to make saving through their workplace plans a priority,” MacDonald said.

Racine-based Modine Manufacturing Co., a manufacturer of thermal management products and systems, has finalized a new four year $145 million revolving credit facility.

The facility, which represents the company’s long term debt, was made possible through a lending syndicate made up of six participating financial institutions – JPMorgan Chase Bank, U.S. Bank, Wells Fargo Bank, Marshall & Ilsley Bank, Associated Bank, and Comerica Bank served as lenders.

JP Morgan Chase acted as administrative agent, LC issure and swing line lender; U.S. Bank and Wells Fargo served as syndication agents, and Marshall & Ilsley served as documentation agent.

“We appreciate the support of our lenders in the refinancing process,” said Michael B. Lucareli, vice president of finance, chief financial officer and treasurer said. “These new debt facilities reflect the tremendous progress we have made during the past 12 months to strengthen our balance sheet and improve our operational performance. Further, we believe these new facilities will provide Modine greater flexibility and ample liquidity to execute our current business plans, while at the same time significantly reducing our interest costs.”

The Waukesha County Chamber of Commerce Manufacturing Alliance will hold the seminar “Access to Capital During & After the Recovery” on Tuesday, Sept. 14 at 7 a.m. at the Brookfield Suites Hotel & Convention Center, 1200 S. Moorland Rd., Brookfield.

The event will include a panel discussion including:

• Mary Perry, area district director with the Wisconsin Department of Commerce
• Dennis Sampson, senior vice president with First Business Bank-Milwaukee
• Paul Stewart, managing director, PS Capital Partners LLC
• Mary Trimmier, economic development specialist with the U.S. Small Business Administration

The event will be facilitated by Keith Bergen, regional account manager with the Wisconsin Manufacturing Extension Partnership.

The event will examine sources of capital for Wisconsin-based manufacturers – which will become more important if economic conditions improve, Sampson said.

“Companies may be starting to see some traction and sales starting to go up,” he said. “When things turn around, they will desperately need cash to build inventory and fund receivables.

“We’re also going to talk tactically about what they should plan for and what they should discuss with their lenders to improve their odds of getting the capital they need as they expand or ramp (production) back up.”

The event is $25 for pre-paid chamber members, $30 for members at the door, and $40 for non-members. To register, click here.

Baird report: M&A market rebound slowed in July

Despite continued rebound over record lows one year ago, the U.S. mergers and acquisitions market showed signs of slowing last month, according to the latest Global M&A Monthly report by Milwaukee-based Robert W. Baird & Co.

There were 883 M&A deals announced in July, an almost 23 percent increase from July of 2009. Dollar volume rose $62.2 billion, but was below the last 12 month average of $72.3 billion.

July’s monthly dollar volume was the lowest level since January, the Baird report states, while the number of deals was the lowest since February.

Year to date deal total was 6,754 at the end of July, a 48 percent increase from one year earlier. Year to date dollar levels have risen to $515.7 billion in the U.S., but remain below the run rate for 2005 through 2007, the report says.

The middle market in the U.S. continued its robust recovery in July, the Baird report says. The 457 transactions announced in July were a 51.8 percent increase over one year ago, and the $30.4 billion dollar total in the middle market was a 77 percent increase.

From January through July, there were 3,314 middle market M&A deals closed, a 77.2 percent increase from the same period one year earlier – the period saw the largest number of middle market transactions since 2000.

The Local Initiatives Support Corporation (LISC) in New York has appointed Milwaukee’s Lisa Glover, senior vice president and director of the Community Affairs Division at U. S. Bank, to the LISC National Board of Directors.

LISC is the leading national community development support organization, with $9.7 billion invested in the lasting revitalization of low-income communities.

Glover has supported LISC Milwaukee’s local efforts to revitalize central city neighborhoods as an Advisory Board member and funder for several years. Glover oversees U.S. Bank’s Community Reinvestment Act efforts, as well as its community and multicultural outreach and giving, environmental affairs, financial education programs and corporate citizenship work.

“Lisa has a remarkable range of financial, investment and community experience, and represents US Bank’s efforts to improve the quality of life in low-income neighborhoods,” said Michael Rubinger, LISC president and chief executive officer.  “We will greatly benefit from her strategic insight as we continue to expand our Building Sustainable Communities initiative and work to transform struggling communities into good places to live, work, do business and raise families.”

LISC combines corporate, government and philanthropic resources to help nonprofit community development corporations revitalize distressed neighborhoods. LISC Milwaukee opened in 1995 at the request of the Greater Milwaukee Committee to increase investment in central city neighborhoods.

Community Bank & Trust has promoted Grant Schilling to office president of the bank’s Glendale branch.

Schilling has more than 13 years experience in the banking industry. His most recent role was senior vice president of commercial banking.  

Schilling is involved in community programs such as United Way, Junior Achievement, Habitat for Humanity and Pearls for Teen Girls.

JPMorgan Chase donates new truck to Feeding America Eastern Wisconsin

Today, JPMorgan Chase donated a new 24 foot truck to Feeding America Eastern Wisconsin, which will help the nonprofit deliver and pick up food donated to its Fresh Rescue program from retail stores throughout metro Milwaukee. Last year, the Fresh Rescue program gathered more than four million pounds of fresh food.

“At Chase, we strive to give back to the local, underserved communities we serve in Wisconsin, particularly when our efforts can enhance their quality of life,” said Jim Popp, Wisconsin and Minnesota President for Chase. “This refrigerated truck better equips Feeding America Eastern Wisconsin to deliver nutritious food to our local communities, and we could not be more proud to be part of this hunger relief initiative.”

The truck was part of a $5 million national grant from Chase to Feeding America, the nation’s largest domestic hunger relief organization. The donation has supplied the nonprofit with 34 trucks to 20 food banks in communities hit hard by the recession.

“Meat and produce provide essential nutrition including protein and vitamins that are often lacking from the diets of those at risk of hunger,” said Bonnie Bellehumeur, president of Feeding America Eastern Wisconsin.

“We’re grateful for community partners like Chase that are taking an active role in caring for hungry children and families. This truck will provide healthy food choices for those struggling to put food on the table for years to come.”

Clifton Gunderson will present the free webinar “Structuring International Operations: Tax and Accounting Considerations” on Wednesday, Sept. 22 at 10 a.m. The webinar will look at topics including legal structure, reporting standards, compliance, transfer pricing and repatriation.

Registration is required at www.cliftoncpa.com/resources/events. One continuing professional education credit is available.

Clifton Gunderson will also present the webinar “Five Tax Saving Ideas for 2010” on Thursday at 10 a.m. The free webinar will discuss accelerating income into 2010, planning for increased labor costs for future years, Roth IRA conversions and more.

Registration is required at www.cliftoncpa.com/resources/events. One Continuing Professional Education credit is available.

The Financial Planning Association of southern Wisconsin will present the seminar “The Financial Reform Bill & Tax Planning: What every advisor needs to know heading into next year” on Tuesday, Sept. 14 from 7:30 a.m. to noon at the Country Springs Hotel, 2810 Golf Road, Waukesha. Speakers will highlight recent federal regulation changes and how they affect how financial planners will interact with clients. For more information, click here.

Banking

• Wisconsin Department of Financial Institutions 
• Federal Deposit Insurance Corp.
• Wisconsin Bankers Association 
• Community Bankers of Wisconsin
• Wisconsin Mortgage Bankers Association
• American Bankers Association
• Bankers Association for Finance and Trade
• Commercial Finance Association 
• Risk Management Association

Mergers & Acquisitions

• Association for Corporate Growth 
• International Business Brokers Association 
• Mergers.com

Wealth Management/Financial/Retirement Planning

• Financial Planning Association
• Financial Planning Association of Southern Wisconsin
• Investment Management Consultants Association
• National Association of Personal Financial Advisors (NAPFA)

Other 

• Society of Financial Service Providers
• Small Business Administration
• State public awareness campaign
• Wisconsin Credit Union League
• CFA Institute
• CFA Society of Milwaukee
• Wisconsin Angel Network