May - jun Weathering the Storm:

2010 Experts Push For Answers

The fruits of technology have given cell phones, internet, and GPS to the new millennium,
but even in 2010, much of nature’s behavior still remains a mystery. As recent headlines
in Yazoo City, MS, and Albertville, AL, remind us, tornadoes can develop in minutes to
become life-altering events. To combat this reality, researchers around the country have
joined forces this May to tackle the elusive mechanics of tornadoes in what is called the
VORTEX2 Project (Verifications of the Origins of Rotation in Tornadoes Experiment 2).
The scope of the project is especially encouraging, as it is the largest study of tornadoes in
history. As of May 1st, one hundred researchers funded by the National Science Founda-
tion have strewn sophisticated storm-
chasing equipment across “Tornado Al-
ley” in the Great Plains states, from
Texas up to Minnesota. Throughout this
north-to-south corridor they are manning
a myriad of instruments to track activity,
The BankNote

much as a trapper would set snares for

prey. The goal of these storm-chasers is
to encircle the tornadoes with an army of
FIRSTSTATE BANK NEWSLETTER

radars and record the statistics of how

they form, swirl, and dispel. One ele-
ment of particular interest to the re-
searchers is how a funnel cloud is
spawned from a storm front. The belief
is that more understanding of these cru-
cial origins will lead to quicker warnings.

Closer to home, the Clay County EMA is our First Re-

sponder to foreboding weather events, as well as a host of
other potential emergencies. As the EMA’s Theresa
Daugherty puts it, they are the Masters of Disasters and
are an umbrella of such life-threatening scenarios as
Emergency Food & Shelter, Pandemic Response, Vaccine
Stockpiles, and of course, Homeland Security. This multi-
front battle against adversity keeps the EMA busy year-
round refining their response systems. For example in its
role as the Point-of-Contact for the Chemical Stockpile
Program, the EMA experts outlined every potential contin-
gency which ultimately resulted in 71 different response
binders! At this time of year though, it is the threat of dan-
gerous storms that keep them the busiest. If a tornado
were to strike our area, the EMA would first determine
what resources the county would need, and contact the
state for more where necessary. They would then coordi-
nate Search & Rescue teams, and dispatch them accord- Theresa Daugherty
ingly to areas in need.
The Red Cross would
then be contacted and
directed to set up shel-
ters for displaced resi-
dents. While no one
can yet prevent a tor-
nado from forming, it is
comforting to know the
EMA is standing ready,
and taking action to
minimize the impact.
Leadership Community Bankers In Action...

Recently the Leadership Community Bankers division of CBAA (Community Bankers Association of Alabama) sponsored a
forum that brought area students all the way to the state capital to join their elected leaders in action. As a member bank,
FirstState sponsored Lea Isbell of LHS and Chasity Burney of CCHS in LCB’s 14th Annual Legislative Day, and hosted a
trip to Montgomery where the students were able to gain first-hand knowledge of how government in their state is actually
conducted. In perhaps the most interactive part of the agenda, Lea & Chasity sat in chamber and participated in a mock
vote of legislation. After successfully passing two mock bills, FSB Leaders Miles Mathis and Michaeline Giffone accompa-
nied the students on a tour of the State Capitol Building and Archives Building, where they were exposed to the inner work-
ings of our state’s legislative history. The day was capped off with a luncheon attended by Alabama state senators, who
met our students face-to-face and answered their questions about government operations. Heritage & Education have
been recurring values of FirstState Bank, and we appreciated this opportunity to experience them alongside Lea & Chasity.

2010 Census Results...

Maintaining an accurate population count is more than a formality of ‘human inventory’. It directly impacts what attention a
region will receive, beginning with the most encompassing arena of all—-representation in the federal government. With
72% of the 2010 census already received, the results are pointing to some dramatic changes across the country that will
affect future elections. Some of the key population losses this year were in the states of New York, Massachusettes, and

Illinois, which as a result will lose as www.census.gov

many as two seats in the House of
Representatives. Conversely, Texas’
population increased by 2 million and
will in turn receive four additional
seats. As of the moment, Alabama is
remaining about the same with 30%
of its census yet to be returned.
Locally, Clay Co is showing 68%
complete, and Randolph Co 62%
complete. If you missed the April 1st
deadline to mail in your census form,
you can expect an upcoming visit
from a US Census Bureau agent.
Bear in mind that a valid Census
agent will have a US-issued badge to
authenticate who they are, and do not
need to enter your home to complete
their questions. They must ask for
your names, ages, and phone num-
bers, but cannot ask for an account
number or social security number.

Page 2 THE BANKNOTE

 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 se-
curity. In our last issue, The BankNote focused on Principal Reduction, and
how this option can help your FirstState loan pay off quicker. This issue will
continue the discussion of Financial Literacy with a focus on FDIC Coverage,
and how our partnership with them protects your accounts here at FirstState.

FDIC Coverage...

May is “National Egg Month”, and just like the age-old wisdom not to ‘put all
your eggs into one basket’, it is equally prudent to understand how FDIC Cover-
age affects each type of bank account. The current maximum coverage by the
FDIC is $250,000 per each of seven account categories, and is due to revert to
$100,000 per category after 12-31-13. Understanding how these accounts are
defined by the FDIC can help explain exactly how much is and is not covered.

1) Single Ownership……………(deposit accounts in one name only)

2) Joint Accounts………..(deposit accounts in more than one name)
3) Business Accounts……..(those that are not sole proprietorships)
4) Retirement Accounts…………...……….(at FirstState Bank: IRAs)
5) Revocable Living Trust…(a.k.a. Testamentary or POD accounts)
6) Irrevocable Trust………………..(cannot be altered once finalized)
7) Government Deposit……(accounts used by government entities) Eggs in Many Baskets

The most encompassing category is Single Ownership, which refers to deposit accounts held under one individual name.
Checking accounts, Savings accounts, CDs, and businesses that are sole proprietorships (“Doing Business As”) all fall into
this category, provided they are under one individual name. Joint Accounts are a separate category and include Checking
accounts, Savings accounts, and CDs; however, the FDIC coverage amount is divided equally between the account hold-
ers, up to the $250K limit per account holder. Business Accounts that are not sole proprietorships are a separate cate-
gory of their own. Retirement Accounts at FSB are offered in IRAs in a variety of options, and are a separate category of
their own. A Revocable Living Trust is a category of accounts that bequeaths its balance to a beneficiary upon the ac-
count holder’s death, and can be altered during the account holder’s lifetime. Irrevocable Trust accounts are a similar but
separate category, that cannot be altered once opened. The final category is Government Deposit accounts which are
simply accounts held by government entities that deposit Public Funds, such as a city government or housing authority.
In the example on the right, ‘basket’ and as such, its
“Joe Customer” has accounts Joe Customer’s Accounts (all in his name only) value is at the exact $250K
listed only in his name. Keep- maximum so it is entirely cov-
ing the basket theme in mind, ******************** ered as well. His total FDIC
his Checking Account, Savings coverage of these accounts
Account, and CD are all cate- Checking Account: $10,000.00 is therefore $400K ($150K +
gorized as ‘eggs’ in the Single $250K), as both ‘baskets’ are
Ownership basket. As a sin- Savings Account: $40,000.00 added together. If for exam-
gle category, the total of these ple his IRA had been valued
three accounts adds up to CD: $100,000.00 at $270K though, then $20K
$150K ($10K + $40K + $100K), of that would not be FDIC
which is well within the FDIC IRA: $250,000.00 covered, and would subse-
threshold of $250K. His IRA is quently result in the same
categorized as a separate TOTAL FDIC COVERAGE = $400,000.00 total coverage of only $400K.

MAY - JUN Page 3

In The Spotlight: Rozell East

FSB’s Bookkeeping Department is the daily destina-

tion of all transactions conducted in the bank, whether
it is a CD being opened, a loan payment being made,
or a check being cashed in the Drive Thru. Rozell
East works as a Representative there, and originally
came to us in 2002. With a lengthy background in
Financial Services, Rozell had most recently worked
for Alfa Insurance when her application caught the
eye of FirstState’s Ruby Dewberry. After a successful
interview with CFO Carlton DeVaughn, Rozell was
hired and began work with us thereafter. Not only
does the Bookkeeping Dept consolidate the bank’s
activity, it also serves as the response center for cus-
tomer questions about the status of their accounts.
As such, Rozell has found reward in helping people
“Treat people as you would hope to be find the answers they need. She works to alleviate
the concerns that are on their minds, and frequently
treated, and help however you can.” has customers that ask for her by name. She knows
...words to live by from Rozell East that sometimes a bank statement is not enough, and
loves to help “make the numbers make more sense”.

Community Life: Turkey Dusting

One of nature’s most compelling phenomena is the odd

way turkeys groom themselves from parasites that col-
lect in their feathers and underneath their bellies. After
their morning meal, turkeys usually seek out a water
source to wash down whatever they have just eaten.
Once their thirst has been sufficiently quenched, the
next task on their agenda is often to find a mound of dirt
to begin their peculiar practice of self-grooming. In what
seems an unthinkable idea for most us, turkeys will ac-
tually lower themselves on top of an anthill and begin to
wallow in it. The turkey will remain there until the ant-
infested dirt has dispersed throughout its feathers
enough to dislodge the lice & ticks that have dug them-
selves into its underbelly. Once this is finished to the
turkey’s satisfaction, the bird will finish the task by mov-
ing away from the mound and vibrantly shake the resi-
due from its wings, much like a dog hopping out of a
bath. The official term for this ritual is “dusting” as it
creates a cloud visible from some distance. In the pic-
tures to the right, an AL turkey hen has found a spot she
considers acceptable, and goes through the full motions
of “dusting” herself clean. This unique practice is one
more way of distinguishing wild turkeys as the intelligent
fowls that they are, worthy of our continued fascination.
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