sep - oct

Remembering Our Heritage:

2010 A Call For Community
At FirstState Bank we were
pleased to learn that 1,297
banks carry the word ‘First’ in
their name, followed by 154
with ‘People’ and 55 with
‘Heritage’. That statistic con-
firms what we have always be-
lieved; that First, People, and
Heritage, are key components
of community banking. The
2010 Fall Season will be chock-
full of these timeless themes, FirstState Bank
beginning with Ashland’s Octo-
ber embrace of the state-wide
“Great Alabama Homecoming”.
Board of Directors, 1971
The BankNote

This festival is being celebrated in small towns across Alabama, and will be just what the
name implies: a gathering of past generations coming together in one place, to reunite
FIRSTSTATE BANK NEWSLETTER

and reminisce. Ashland is also honoring its heritage with a new wall to be constructed in
the square, where the names of family members and other loved ones can be etched into
a brick, permanently leaving their mark “written in stone”. The Great Alabama Homecom-
ing is being celebrated in Ashland on Oct 8th, 9th, & 10th, and again in Lineville on Heri-
tage Day, Nov 6th. Not to be overlooked in the excitement is Lineville’s “Downtown Re-
union” that will be held concurrently on Nov 6th, as the old Lineville landmark is given
tribute. The modern city of Lineville began in 1838 with the establishment of the Lundie
Trading Post, and by 1856, the downtown Lineville intersection had become a landmark
watering hole for pioneers on their way to test their skills in the great American West.
This Fall as we reflect on these treasured memories of the past, FSB cannot help but be
reminded of the settings and building blocks that have made us who we are today. In the
early 1970s, our bank arose against the odds through the will of strong men & women
who were determined to have a bank that would serve the people of our community bet-
ter, and keep local dollars in local hands. Just as the Lundie Trading Post was “in the
right place at the right time”, FirstState’s founders seized the moment and built an institu-
tion that would revitalize its community for decades to come. As FSB looks forward to its
40th anniversary next year, we are reminded that the key to endurance is keeping one
eye on the past, and the other on the future. In so doing, one is able to see what brought
us into the present, and weave the best parts of our heritage into the fabric of our future.

FirstState Bank

Board of Directors, Present Day

FirstState Veterans...

Veteran’s Day is right around the corner, and is con-

Carlton DeVaughn, CFO
U.S. Army - Vietnam War
Miles Mathis, Mkt Ofc
sidered no minor occasion here in Clay County, AL.
Deeply embedded in our region’s heritage, our commu-
nity’s volunteer spirit is well-recorded and has spanned
back many decades into the past. In fact in 1990, Clay
County received national media attention from CNN,
USA Today, and Newsweek for the unique distinction
of having, “more military personnel per populace serv-
ing in the Gulf War than any county in the USA”. This Ken Vaughan, Pres/CEO
factoid eventually made its way to the TV series “24”
which scripted one of its counter-terrorism characters
as being from Clay County, AL. Our FSB Officers are
well-represented with military service including Presi-
dent/CEO Ken Vaughan of the Marine Corps in the
1960’s, CFO Carlton DeVaughn of the U.S. Army who
served in the Vietnam War, and Marketing Officer
Miles Mathis of the U.S. Air Force in the early 1980’s.
As Nov 11 approaches and our community commemo-
rates its heritage, FirstState salutes our men & women
serving their country for our freedom here at home.

U.S. Air Force U.S. Marine Corps

Christmas Club To Pay Back Soon...

On Nov 10, FirstState Bank will be proud account holders know that putting a little
to mail out checks to all the thrifty owners away throughout the year will result in a
of our Christmas Club accounts. These sizable payout later on—-just in time for
accounts are built to help owners help Christmas shopping. With the economy
themselves, by paying one lump sum for as it is, this payout feels like its own per-
all the tiny deposits made throughout the sonal Christmas bonus, courtesy of
year. These checks are not only a bene- themselves. The best time to open a
fit to their owners, but they also provide new Christmas Club account will be the
more spending power to boost sales to second week of November, in order to
area merchants. Our Christmas Club receive the maximum payout in 2011.

Still Waiting On Checks To Clear?

If you have ever written a check and then helpful in the event that a question arises
found yourself stuck waiting for the payee later. A Money Order has a designated
to cash or deposit it, FSB has two options payee line but is completed by the pur-
worth considering the next time: an chaser, and is not documented on bank
Official Check and a Money Order. records. There is a $10 charge for an
These two instruments clear your account Official Check and a $3 charge for a
the same day they are purchased, and do Money Order, unless obtained through a
not rely on the payee to take action. VIP Checking Account, in which case
When an Official Check is purchased, the charges are waived (maximum of
the parties and the amount are all docu- three times per month). Both options are
mented on bank records, which can be available at all our Lobby Teller desks.

Page 2 THE BANKNOTE

Mumbo Jumbo...
FirstState Bank believes in breaking down the “mumbo jumbo” of bank-
ing terminology in order to clear the air on how we are looking out for
customer security. In our last issue, The BankNote covered the subject
of Home Equity Loans and how a HELOC helps homeowners create
new cash flow, using the net worth of their house as collateral. This
issue will continue the topic of Financial Literacy with a focus on the
subject of IRAs, and how these Individual Retirement Accounts can
compound over a period of time to provide a nest egg for the future.

IRAs: Individual Retirement Accounts

As the changing shades of autumn
leaves draw our eyes upward into
canopies of color, the welcomed cool-
ness of the air reminds us that 2010
will soon be coming to an end. And
as the final business of the year must
now be “chipmunked away” before it
passes, FSB suggests there is no
better time to consider the wisdom of
an IRA. Although IRAs are Time De-
posits, they are insured by the FDIC
in a category of their own. As of
2008, the maximum coverage that the
FDIC will extend toward an IRA was
raised from $100K to $250K, and as
of July 2010, will now be covered to
that amount permanently. If you have “The tallest oak begins
funds that you would like to apply to-
ward planning for the future, then the
with but an acorn.”
best way to get the strongest return is
from an IRA. These Individual Retire-

Traditional IRA Roth IRA Age 59.5 IRA

Traditional IRAs are individual retirement
accounts that may offer a possible tax
benefit immediately for the owner (consult
your tax adviser for details). These IRAs
are taxed upon the withdrawal of its funds.
Roth IRAs were introduced in 1998 and work
much in reverse to a Traditional IRA. Initial
requirements must be met by the owner before
any tax benefits may come from this type of
IRA (consult with your tax adviser for details).
For customers who are at least 59 1/2 years
of age, FSB offers its 59.5 IRA that provides
competitive interest rates and a 5-year Vari-
able Rate attached to the floor. (Restrictions
do apply. Consult your tax adviser for details.)

ment Accounts pack the greatest and legal status. Then come speak with
punch because as money is being our Customer Service Representatives
saved, they may also create a tax at FirstState Bank, and let us assist you
benefit for their owners. Stiff penal- toward the best options for your situa-
ties for early withdrawal do apply tion. Planning for the future can only
though, so IRAs are best suited to help bring more stability to the “here
customers who can set funds aside and now”, and also brings to mind the
indefinitely. These instruments are a quote, “We journey down the road of life
tremendous advantage later in life, as facing forward, but can only gain per-
owners create their own source of spective through what lies in the rear
retirement income. Because IRAs are view mirror.” In this season of reflection
tied to earned income, the tax implica- on the passage of time, we would re-
tions are very detailed. If you are mind our readers that what can start
thinking about opening an IRA, visit today as just an acorn, will eventually
your tax adviser first to clarify your tax grow as tall and deep as a sturdy oak.

SEP - OCT Page 3

In The Spotlight: Bernard C. Spurlin...
"To reach new horizons you must forego the safety of the shore”
...FSB salutes originating Board Director, Bernard C. Spurlin
Bernard Spurlin’s contributions to FirstState Bank
are without rival, and having thoroughly com-
pleted his track record of success, he has cho-
sen to make last Aug 10, 2010, his final meeting
as a Director of our Board. Mr. Spurlin is joined
by Don Hogan in being the only two remaining
members of the Board from its inception back in
1971. With only two banks in Clay Co at that
time, most of the opportunities for financing
were thirty miles away in Calhoun Co. That left
the people of our community eager for a bank
to keep their money close, with familiar faces to
ensure better service. Mr. Spurlin recognized this
need and chose to capitalize on a new chance
for community development. Thanks to his pas-
sion and business savvy, FirstState Bank is still
thriving today. Look for the expanded story of
his esteemed life’s work soon to come from FSB.

Community Heritage: Judge Ingram & the Courthouse...

In 1867 the City of Ashland was established as the County Seat of

Clay County, being its geographic center. In 1906 this standing was
elevated with the construction of the modern Ashland Courthouse. 104
years later on July 27, 2010, the Courthouse lost one of its most beloved
personas in that of George M. Ingram. Having served three terms
and unopposed in the final two, Judge Ingram’s professionalism in
handling court business endeared him to the people of Clay County.
Most recently, he was distinguished for having spear-headed the 2006
Courthouse Centennial and the subsequent closing of the Corner-
stone, thereby ensuring the tradition will continue until the next bicen-
tennial arrives in the year 2106. FirstState Bank joins our fellow citi-
zens in tribute to Judge Ingram as one of our greatest and truest sons.
If you have a digital picture of life in our community that you would like to share in a future issue of The BankNote, please email it to:
Vaughn.Samuels@FirstStateDirect.com. Submissions are not guaranteed to be published and stories may require editing.

Lineville Office Ashland Office Wedowee Office

P.O. Box 547 P.O. Box 518 P.O. Box 264
Lineville, AL 36266 Ashland, AL 36251 Wedowee, AL 36278
(256)396-2187 (256)354-2145 (256)357-0440
www.FirstStateDirect.com