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In the modern world of cash andcredit, the value of gold is often

overlooked, but just as goldsprice has been steadily rising, sohas the activity at RandolphCountys Alabama Gold Camp.On County Road 5 about a milepast Robertsons Garage inCragford, the AL Gold Camphas been flourishing since 2007as patrons have come away withgold from three local creeks thatspan 200 acres of campground.The Gold Camp has thought ofeverything and provides equip-ment available for rental, as well

as training from a seasonedprospector. For first-timers,Miner Mike is on-hand to dem-onstrate four established tech-niques of prospecting; the lower-yield methods of Panning &Sluicing, and the higher-yieldmethods of High-Banking andDredging, where gold is mostlikely to be unearthed. The GoldCamp has already gone to theextent of digging into the creeksbedrock where gold particlestend to settle, to make the ex-

perience even more user-friendly for prospectors. Goldhas been found in Alabamasince the late 1800s as an ex-tension of the Georgia Gold Belt.And as local jewelers confirm,Alabama gold is comparativelypure in grade with a generalcontent level of 22-24 karats. Atwww.AlabamaGoldCamp.com,the AGCs homepage even hasa link to the current price of gold,which has hovered around$1,000 per ounce since early

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Alabama Gold Camp:Cragfords Hidden Treasure

FSB Has Safe Deposit Boxes

FirstState Bank still has SafeDeposit Boxes available forrental, including our most eco-nomical size, 3 x 5 x 24. Theseboxes are excellent for storingimportant documents, as well asprized possessions that are toovaluable to leave at home. Toget your valuables protected inour vault, contact our CSRs inLineville, Ashland, or Wedowee.

2008. In a down econ-omy, buying gold has tra-ditionally been consideredone of the safer invest-ments that can be made.The strong price of goldhas area jewelers & pawnshops actively involved inbuying it, both in raw andfashioned pieces, therebymaking the gold exchange

profitable for both buyers and sellers in our community.

Prospecting for gold is a fun experience for enthusiastsseeking the thrill of discovery, a link to the past, or justlearning a new skill in the great outdoors. The Ala-bama Gold Camp is a member of the GPAA (Gold Pros-pectors Association of America) and has even hostedprospectors from as far away as Russia & Japan.The word is getting around: there is gold in Alabamaand one of the best spots is right in our own backyard.

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Page 2

My Community, My Bank...

The Tide Rolls In!

T HE B ANK NOT E

If you would like to tell Congress exactly what you think about the economic downturn in America, we would like to introduceyou to a site created exactly for that purpose: MyCommunityMyBank.org The Independent Community Bankers Associationhas created this site which will automatically send your feedback on to Congress, in a written letter or uploaded video. Thispresents a first-time opportunity for everyday American citizens to bring the common sense of Main Street directly to Congress,that is more accustomed to hearing from Wall Street. The bigger banks of our nation that have dragged the country to nearfinancial ruin are likely to continue their practices until they see waves of their customers switch to safer Community Banks. At

FSB we support ICBAs initiative tobring community voices into the discus-sion. After unprecedented taxpayer aidflowed into the megabanks last year,consumers continue to suffer from theiractions; the latest being a hike in creditcard interest rates before new laws toprotect customers had time to pass.The bigger banks know that the incon-venience involved in switching banks isusually what keeps customers stayingput. To simplify things, we would likeyou to know that FirstState Bank hasoutlined the bank-switching process in

ourNov/Dec 2009 issue of The Bank-Note. Reprints can be emailed to you atyour request, but the three main stepsof a switch are summarized as follows:

www.MyCommunityMyBank.org

Time to let Congress hear your voice

1) Open the New Account first. Get the new account open and ready to start handling transactions.

2) Make a list of your creditors. Notify any that would be affected. Direct Deposits are the most time-consuming part.

3) Close the old account. Monitor all pending transactions, then move your remaining balance to your new account.

For more helpful hints on switching to FSB, see our Nov/Dec 2009 issue of the BankNote atwww.facebook.com/firststatebank

The Tide was high in CA earlier this year as AL rolled over TX 37-21 to winthe National Championship, making the 2009 season arguably ALs bestever. In one of many firsts, Bama brought home 14 wins, and FSB presi-dent Ken Vaughan & wife Ann were there to see it firsthand. RB Mark In-gram brought the Tide their 1st Heisman Trophy, and LB Rolando McClainwon the Butkus Award, as 6 players were named to the AP All-American

Team. The entire SEC will profit from the win, including academics in needof new funds. Even Auburn fans can find something to smile about in that!

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M AR - APR 2 0 10

FirstState Bank prides itself on breaking down the mumbo jumbo of bankingterminology in order to clear the air on how we are looking out for customersecurity. This issue will resume the discussion ofFinancial Literacy with afocus on Principal Reduction, and how it can help your loan pay off quicker.

At this time of the year, FirstState Bank likesto reflect on the recent past, and how we aredoing as a whole. In a tough economy, weare pleased to see that our total growth wentfrom $157 million in 2008, to $175 million in2009 (an 11% increase). Teller transactionsstayed steady in 2009, hovering around250,000 for the year. From the FDIC website,we are especially proud to see that our Ash-land Office made a significant spike in its Mar-

ket Share of 61%, up by 22% from 2008seven split of 50/50. Linevilles Market Shareclosed at 60%, which does not include num-bers from the 3rd & 4th quarter that are likelyto be a notable boost. Wedowees MarketShare made a slow but steady increase up to7%. The addition of Susan Kimball Brown asBranch Manager in May of 2009 also has uspositioned for optimism in Randolph County.

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Principal Reduction...

Mumbo Jumbo...

FirstState Growth...

A due date and a dollar amount areusually all that is remembered whenmaking a loan payment, but onewise way of wearing it down sooner(and cheaper) is to make a PrincipalReduction. This option helps bor-rowers reach their payoff sooner byshaving off pieces of principal withadditional money in their monthlypayment. In an installment loan,

each months regular payment issplit into two parts: one part interest,and one part principal. In the earlystages of the loan, more of your pay-ment goes toward interest, but astime goes on, more of it starts goingtoward principal. Once each install-ments accrued interest has beenreached, the rest of the paymentautomatically goes toward the princi-

pal amount financed. Paying morethan your regular monthly amountsends the overage directly towardthe principal, thereby leaving lessto be financed. The way it makesyour loan cheaper is that interestis figured on your principal. Ifthere is less principal, then theremust also be less interest. There-fore a Principal Reduction causes

you to spend less total money in ashorter amount of time. If youhave any missed payments, partialpayments, or late charges in-volved, then this scenario may ofcourse not apply. In generalthough, paying more than yourminimum due will only help youpay off your loan sooner, and withless total interest out of pocket.

interest due

principal financed

TIME

NOTE: FirstState Bank does not charge for pre-payment but many institutions do. Check your loan agreement first to be sure.

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Springtime in Alabama means plenty of spectacular sights,

and the flowering vine of Wisteria is one of its prettiest. Itsbluish-lavender bloom can grow to the size of a pineapple, andits wrist-thick trunk is surprisingly heavy. Wisteria tends togrow into a mound when unsupported but can grow up to 20yards high when allowed to twine upwardly. Because of itsweight, Wisteria is not suitable for a lattice that can be easilybrought down, but does best on a well-founded arbor. Onepleasant characteristic of growing Wisteria in our area is that itis deer-resistant, and apparently not an appetizing snack toour foraging neighbors! A great place to view Wisteria grow-ing wild in Clay County is on Highway 9 in Delta, AL, where itcan be seen growing all the way up Lob Lolly pine trees on theside of the road. The Wisteria vine originally came to Alabama

from both China and Japan where it also has a white variety.

Community Life: Wisteria

"You know you want to help!"

...words to live by from Matt Roberts

In The Spotlight: Matt Roberts on TV

Lineville Office

P.O. Box 547

Lineville, AL 36266

(256)396-2187

Ashland Office

P.O. Box 518

Ashland, AL 36251

(256)354-2145

Wedowee Office

P.O. Box 264

Wedowee, AL 36278

(256)357-0440

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.

www.FirstStateDirect.com

FSB is an active participant in the Clay County Co-Op program, which gives local HS students creditfor on-the-job training. Our current student MattRoberts is a senior at Lineville High School, andfills our traditional Co-Op role of Data Processing.Matts talents go far beyond entering computerdata, as he has gained recognition both from theschool and from the bank for his tremendous suc-cess in fund-raising for LHS in his role as presidentof the FFA. A natural salesman, Matt finds ways ofconnecting with every employee in the bank andengages them in an energetic manner that getspeople excited about helping their community grow.His knack for activism recently garnered attentionfrom Bobby Jon Drinkard, former Survivor contest-ant who now hosts the PBS TV show, On TheJob. The public television show gives viewers aglimpse of the behind-the-scenes routines of vari-

ous jobs in AL. It is has been especially successfulin helping students in Matts demographic converttheir ambitions into real-life opportunities. Throughthe link with Matt Roberts, On The Job is ex-pected to film an episode at LHS this Spring, so besure to stay tuned and see our student in action.