Annual Report 2023
A Foundation of Trust
The CEO’s Perspective | Securing the Future | Cultivating Trust | Financials
Luanne Cundiff, President and CEO
Prioritizing the needs of customers while tackling
the challenges of a tough economic climate
Prioritizing the needs of customers while tackling the challenges of a tough economic climate
First State Bank assisted our customers through the high-rate environment by providing
exceptional guidance and deploying new technologies and programs to ensure client success.
We are thankful to our community for their loyalty and trust in our expertise.
First State Bank assisted our customers through the high-rate environment
by providing exceptional guidance and deploying new technologies
and programs to ensure client success. We are thankful to
our community for their loyalty and trust in our expertise.
First State Bank assisted our customers through the high-rate environment by providing exceptional guidance and deploying new technologies and programs to ensure client success. We are thankful to our community for their loyalty and trust in our expertise.
From all of us at First State Bank, thank you.
Securing the Future
Investing in relationships and top-tier security enhancements
to foster peace of mind for customers
Investing in relationships and top-tier security
enhancements to foster peace of mind for customers
Investing in relationships and top-tier security enhancements to foster peace of mind for customers
Easy-to-use digital banking tools serve as the first line of defense against personal banking fraud
Protecting our account holders’ finances is always top-of-mind, but that attention to security has never been more critical than today. According to the Financial Crimes Enforcement Network, there were a staggering 680,000 reports of potential check fraud in 2022 . Our robust digital personal banking platform not only empowers customers to meet their financial goals but it also arms them with a suite of tools like bill pay, account alerts, and credit reporting, all designed to help defend their accounts from fraudsters.
When customers utilize bill pay, they take paper checks out of the equation, avoiding check fraud altogether. Our powerful My Credit Score tool gives customers the ability to monitor for credit fraud with detailed reporting. When customers use our budgeting tools, they gain a greater awareness of where they are spending their money and how to spot suspicious transactions. We make these valuable tools available at no charge to our personal digital banking customers.
An account holder filing a credit dispute with TransUnion through the My Credit Score tool in the First State Bank mobile app.
An account holder filing a credit dispute with TransUnion through the My Credit Score tool
in the First State Bank mobile app.
Implementing innovative strategies that keep businesses thriving
Business owner using Positive Pay anti-fraud tool available in Business Digital Banking.
Scammers and fraudsters are not just after individuals or huge corporations, all businesses share this risk. That’s why First State Bank has implemented anti-fraud tools like Positive Pay. This service fulfills a critical need for business checking customers—streamlining the process of identifying and preventing fraudulent transactions from being processed.
Monitoring a high volume of transactions within a limited time frame can be a daily challenge for time-strapped business owners. Positive Pay helps by quickly detecting potentially unauthorized checks, ACH debit or credit transactions, and flags them electronically without having to call customer support or visit a banking center.
Reducing the use of paper checks is a critical (and easy) way our business and personal account holders can help mitigate their fraud risk. While traditional paper checks may not be going away in the immediate future, First State Bank offers a full array of easy-to-use electronic payment options like bill pay, ACH, Zelle, and wire transfers, to reduce customer exposure to savvy fraudsters.
“First State Bank provided secure procedures to wire money in and out of our account to meet our funding of loan originations and payoffs. They also provided us with a remote deposit device that has allowed us to deposit payments from our office which eliminated many trips to the bank.”
– Barb W.
Although we pride ourselves on our digital banking experience, we are even prouder of the personal relationships we have with our account holders. So, when two major banks closed and caused worry nationwide, the first place our community members and customers turned was to our staff.
The questions we received regarding the security of funds and the Federal Deposit Insurance Corporation (FDIC) prompted us to reassure customers in a variety of ways. We provided a digital resource guide, one-on-one consultations, and educated customers on the necessary deposit insurance they would need if their accounts exceeded the FDIC’s $250,000 standard insurance amount.
Customers with accounts exceeding the FDIC standard insurance limit benefit from the added protection that our IntraFi® membership affords them. This powerful network enables thousands of participating local banks to band together, keeping funds in these large deposit accounts secure using reciprocal deposits. Plus, these local deposits can be reinvested locally, benefiting the communities where we live and serve.
Although we pride ourselves on our digital banking experience, we are even prouder of the personal relationships we have with our account holders. So, when two major banks closed and caused worry nationwide, the first place our community members and customers turned was to our staff.
The questions we received regarding the security of funds and the Federal Deposit Insurance Corporation (FDIC) prompted us to reassure customers in a variety of ways. We provided a digital resource guide, one-on-one consultations, and educated customers on the necessary deposit insurance they would need if their accounts exceeded the FDIC’s $250,000 standard insurance amount.
Customers with accounts exceeding the FDIC standard insurance limit benefit from the added protection that our IntraFi® membership affords them. This powerful network enables thousands of participating local banks to band together, keeping funds in these large deposit accounts secure using reciprocal deposits. Plus, these local deposits can be reinvested locally, benefiting the communities where we live and serve.
How First State Bank Secures Large Deposits with the IntraFi® Network
Customer deposits $1 M at First State Bank.
Funds are separated into amounts below the FDIC-insured maximum of $250,000 and placed into the customer’s choice of:
- Demand deposit accounts and money market deposit accounts (with ICS)
- CD accounts (with CDARS)
The customer can then choose which FDIC-insured, IntraFi® Network banks they wish to deposit their funds while enjoying the convenience of securely managing their money at First State Bank.
“When I learned about the IntraFi product, it became clear this is exactly what we needed. I value having secure, readily accessible, FDIC insured funds, without having to expend the time and effort necessary to research offerings and maintain relationships across multiple institutions. Funds placed into IntraFi earn competitive rates and the marginal benefits of always searching for the best rates across multiple institutions simply doesn’t justify the effort. I particularly appreciate the fact that my banker understands our business needs and I have a direct line of communication with her. Larger banks cannot come close to the level of individualized service we get at First State Bank.”
– Erik B., Immanuel Lutheran
Cultivating Trust
The CEO’s Perspective | Securing the Future | Cultivating Trust | Financials
Making political, social, and economic impact through connection
First State Bank has developed a culture of social responsibility and volunteerism throughout the decades. Each year, our employees hold leadership positions in financial organizations and non-profits, represent the bank at community events, and volunteer their time with worthy groups. In 2023, employees volunteered 5,595 hours serving 45 organizations.
Our consistency and position in the community have allowed us to become a trusted source for many generations. We offer free education at seminars and provide the best options for customers at every stage of life. As a response to some of our customers and their family members experiencing dementia, we have developed and recently expanded our Dementia-Friendly banking program.
Learn more about this program and how our newly created trusted contact form enhances the security of customers’ funds by visiting our Dementia and age-friendly banking page.
Fifth Street banking center manager and business development officer, Jill Scott, held a joint event with local attorney, Rudy Beck to educate customers on estate planning.
Fifth Street banking center manager and business development officer, Jill Scott, held a joint
event with local attorney, Rudy Beck to educate customers on estate planning.
“Our approach is simple: we invest in strong relationships with our customers to build trust. We want them to feel confident that our advice is given with their needs as the priority. One important way we achieve this is by ensuring a real person answers their call.”
– Julie Sanders, AVP, Operations Officer of Product Support
Supporting small businesses with your deposits
Novellus owner Joe A., discusses business strategies with Jill Scott, Fifth Street banking center manager and business development officer.
Novellus owner Joe A., discusses business strategies with Jill Scott, Fifth Street banking center
manager and business development officer.
Banking locally is about more than just keeping your money close to home. It’s about creating a thriving community where everyone benefits. Our customers know they can rest easy with the knowledge we adhere to strict regulatory standards, ensuring a safe, transparent, and highly responsive banking experience.
When customers deposit their money at First State Bank, they play a vital part in helping their local communities flourish. Why? Customer deposits are reinvested in small businesses where we serve, helping to boost our local economy. Plus, the bank has long committed to donating our time and resources to community organizations that directly impact its resident’s well-being.
“The relationship I’ve built with First State Bank goes beyond transactions; it’s rooted in mutual trust, a shared commitment to community and generally doing what’s right. They recognize the hard work we put into Novellus and we have a direct line of communication with them. Establishing a new business is tough, but their genuine approach and understanding of our business needs made the entire process so much easier.”
– Joe A.
Financials
First State Bancshares, Inc. and Subsidiary
Consolidated Balance Sheet
December 31, 2023 (Audited)
Consistency through adversity builds the ultimate trust from the people we serve.
Our substantial capital, gives us a competitive advantage during economic downturns, and is a cornerstone for our resilience and long-term success.
Strong Capital Position
Consolidated Statement of Income
December 31, 2023 (Audited)
Our Mission
To serve as a locally-owned, independent bank providing superior financial services to our community at a competitive return to our stockholders.
Our Board of Directors
CHAIRMAN
David P. Strautz
Retired CEO
First State Bank of St. Charles
VICE CHAIRMAN
Jim Droste
Retired President
Al Droste & Sons Construction
Luanne Cundiff
President & CEO
First State Bank of St. Charles
Chris Goellner
President
Goellner Printing
Jennifer Bouquet
President
J&J Boring, Inc.
Jill Kluesner
President & CEO
LHB Industries
Ray Bayer
Retired President & CEO
MOHELA
Michael Eagan
Retired Senior Vice President
Advanced Technologies Group
John W. McClure
Retired Bank Executive
Mercantile Bancorporation
