mAR - APR

Dreams Are Coming True

2009 On Lake Wedowee
Spring has sprung, and Lake
Wedowee is overflowing with
abundant life! One look at its
serene beauty fills the senses
with fresh ideas for R&R.
Now having secured a six-
year presence in Wedowee,
AL, FSB would like you to
know the many sides to rec-
reation in Randolph County‟s
picturesque icon.
As a natural habitat for south-
eastern specimens, Lake We-
dowee is a virtual paradise for
birdwatchers. Birds of prey
The BankNote

like the Osprey and Bald Ea-

gle are admired as they soar
close to the water in search of
a meal. These raptors make
FIRSTSTATE BANK NEWSLETTER

themselves at home along

the lake, and their nests have
become local eye-catchers.
The glacial surface of the lake
itself reflects the sky with im-
peccable color, and reveals a
glimpse of the marine life
dwelling underneath it. While
the lake is usually occupied
with casual boating, there are
also organized events for the
pros like the annual Bass
Fishing Tournament. This
year‟s competition was held
Mar 7, and sportsmen lined
the piers, eager to showcase
their skills to the public. owners are purchasing a familiar face in new
lots that they are waiting surroundings, so as
One common thread at Lake
to build on at retirement. these consumers work on
Wedowee is that many land-
FSB knows the value of their nest egg, the We-
dowee branch is happy to
lend a hand, offering
flexible CDs that will be a
breeze to redeem, come
time to break ground.
FirstState‟s share in the
Wedowee market has
doubled over 2008, and
is poised to continue up-
ward in the months to
come. Whether passing
through for quick ATM
cash, or a lengthier chat
on watercraft lending,
FSB is here on the
square to help your lake-
life dreams come true.
Will’s Way...

Will‟s Way is a Retreat Center founded fully-powered amphitheater exists

by Sandy & Re Holliday off Hwy 431 in for conferences or concerts.
Randolph County as a natural legacy of There is also a petting zoo, for
their teenage son Will, who tragically the healing that only animals can
lost his life in a car accident. Their on- provide. As a non-profit entity,
going journey of overcoming loss in- Will‟s Way is funded by dona-
spired them to create this haven for tions, and FSB has been privi-
those who are grieving for a loved one. leged to assist them with pro-
Re herself declares it, “In memory of the ceeds for their annual Egg Hunt.
lost, In honor of the suffering”. The It gave us great pleasure to hear
Will‟s Way vision is to help people heal their review that, “Whatever we
as individuals, as groups, as adults, and needed, FirstState was there.”
as children, with a special environment This year‟s Egg Hunt will feature
for each person‟s need. For those Alabama RB Siran Stacy as
needing seclusion, an inviting network guest speaker on Apr 11. With
of bridges and trails leads to a wood- construction underway for more
land chapel beside a pond. The peace- cabins, youth housing, and
ful and reverent surroundings provide a weekly music, Will‟s Way is ex-
healing touch for the wounded in spirit. panding to meet more needs of
For larger groups with meeting needs, a the community, as FSB applauds.

FirstState Growth...
Fresh foliage isn‟t the only thing bloom-
ing in East Alabama—--FirstState Bank
took a step up in last year‟s totals from
$147M to $157M. FSB branches com-
bined to create $9M in new accounts,
and 256K teller transactions. From the
FDIC website it is reported that Line-
ville‟s new building retained the majority
of its market share, Ashland was an
even split with the competition, and our
Wedowee branch doubled from its „07
market share. 2008 saw 2,403 new
loans from us, resulting in a Loan-to-
Deposit ratio of 73.85 (about 3:4). First-
State‟s leaders attribute this growth to
their commitment to foresight, delega-
tion, and education. 36 out of 40 First-
State employees also completed 16
online banking courses, broadening
their financial knowledge, along with
their ability to serve you better.

Page 2 T HE B A N K N O T E
 Mumbo Jumbo...
FirstState Bank prides itself on breaking down the “mumbo jumbo” of banking
terminology in order to clear the air on how we are looking out for customer
security. In our last issue, The BankNote highlighted CDs and IRAs, and how
these “Certificates of Deposits” and “Individual Retirement Accounts” can en-
hance your business here at FirstState. This issue will continue that discus-
sion with a focus on the area of Borrowing & Lending at FirstState Bank.

Annual Percentage Rate (APRs)...

The confusion about APRs usually
stems from the main question on a
borrower‟s mind, “what is my rate?”.
Whatever the interest rate may be,
the annual percentage rate could
be higher because it reflects the
total cost of credit involved in the
loan. In most loans, there will also
be fees to be paid that go beyond
the principal amount financed.
These fees are charged because
they cover the necessary cost for
the loan to be provided in the first
place. A few common examples of
these expenses are the cost of:
inspections, credit research, title
inquiry, and creating payment
vouchers. These costs occur
in addition to the principal amount
financed, so in order to get a yearly
snapshot of the total cost, there is
an APR to reflect it.
APR is a measure of a loan’s
total cost.
For example, imagine a loan for $15,000 for
60 months with a $304.24 monthly payment.
60 months x $304.24 = $18,254.40
$18,254.40 - $15,000 = $3,254.40 (costs)
The Interest Rate would be: 8%
The APR would be: 8.013%
The disclosure of APRs is
intended to enable the cus-
tomer see the total cost of
their loan from a yearly per-
spective. The FDIC is a use-
ful source of information on
the subject of APRs, and can
be referenced for case-by-
case scenarios. One helpful
illustration from their hand-
book is that, “The APR is a
measure of the cost of credit,
expressed as a nominal
yearly rate. It relates the
amount and timing of value
received by the customer to
the amount and timing
of payments made.” To learn
more about the subject of
APRs, FirstState Bank en-
courages customers to visit
www.FDIC.gov .

Think Before You Charge...

With graduation approaching, many
parents are contemplating how they
can best help their son or daughter
make the leap from college to ca-
reer. If the move will be to a new
city, then a new residence typically
tops the wish-list, while secondary
costs of furniture and moving ex-
penses impulsively end up on a
credit card. These new expenses
then get lumped together with
charges already on the card, from
weekend shopping to restaurant
dinners. In a few short days, your
credit limit can stifle your entire buy-
ing power with no end in sight!
Keeping the short-term separated from the
long-term is a key part of solid borrowing,
and FSB excels at guidance in these deci-
sions. Unlike a distant, anonymous creditor,
FSB works face to face with
consumers to find the best
answer to all their financial
plans with a variety of lend-
ing that goes beyond a typi-
cal installment loan. Best of
all, we are easy to get a hold
of when questions arise and
may have the most flexible
solutions. When our borrow-
ers are successful, then we
are successful. Motivation
like that can only come from
a bank like FirstState where
your financial outcome tops
both of our priority lists.

M A R - A P R 20 0 9 Page 3
 In The Spotlight...
FirstState‟s Wedowee office opened in 2003 and
has been piloted by Branch Manager Carrie
Fifarek for the last four years. She is originally
from Ashland AL, and graduated from Bibb
Graves High School. She proceeded to graduate
from the Troy University campus in Pensacola
FL, with a degree in Business Management.
Carrie‟s first job was with AmSouth Bank as a
CSR, and through her work with loan applicants,
she became Branch Manager. As such, Carrie
has an appreciation for all aspects of banking
and the many nuances that go along with them.
Having brought her experience to FSB in 2005,
Carrie is as comfortable in extending real estate
loans as she is at opening new accounts or work-
ing the teller desk. It is easy for anyone walking
into our Wedowee branch to see that shared re-
sponsibilities are the typical way of working.

"Customers are the reason One lesson that Carrie learned early on in her
career is that “Customers are the reason we
we have a job" have a job.” This value of service is what has
served her well in her past, and continues to
...words to live by from Carrie Fifarek serve Wedowee customers as FirstState broad-
ens its presence in Randolph County.

Community Life...
The official name for Alabama‟s State Bird is “Northern
Flicker”, but as is often the case, the regional name it is com-
monly known by is “Yellowhammer”. This beautifully clad bird
is a frequent visitor to Alabama households as Winter gives
way to Spring, and is welcomed to do so, as it consumes more
ants than any other bird in the U.S.A. Alabamians consider
this nothing short of a blessing, as Spring showers often finish
with a fresh array of anthills dotting their lawns. As a member
of the woodpecker family, the Yellowhammer prefers to nest in
dead trees, but spends most of its time bobbing on the ground,
looking for a meal. Ornate as its speckled body and signature
red-banded neck are, its true appeal cannot be fully appreci-
ated until it is witnessed in flight, revealing the yellow coloring
underneath its feathers as its wingspan extends outward.

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