Each depositor insured to at least $250,000 per insured bank

Account(s): What about my account with First State Bank?

If you had an account with First State Bank, you now have an account with Stearns Bank, N.A., St. Cloud, MN. All deposit accounts, which include checking, savings, money market, CDs and retirement accounts, have been transferred to Stearns Bank, N.A., regardless of the dollar amount. No one lost any money on deposit in First State Bank.

Customers of both banks should continue to use their existing branches until Stearns Bank, N.A. can fully integrate the deposit records of First State Bank.

To forewarn you of any scams, please be advised that you will not receive any e-mail notification from the FDIC, the Receiver, or Stearns Bank, N.A. to claim/unlock/unsuspend your account or to provide any private information. Please be watchful for and resist any such scams to obtain information from you by individuals or entities purporting to act on behalf of First State Bank.

ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with First State Bank?

Your ATM/debit card will continue to work, and bill paying will work as it has in the past.

Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?

As an All-Deposit Transfer transaction, the total of all deposit accounts, excluding the Cede & Co. brokered deposits have been assumed by Stearns Bank, N.A. The FDIC retained the Cede & Co. brokered deposits and will pay those accounts off directly.

Be advised, however, that from and after the date of closing, Stearns Bank, N.A. will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, Stearns Bank, N.A. shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.

Direct Deposits - Government Deposits: What will happen to my direct deposits?

Direct Deposits, including Social Security checks, will continue as normal.

Existing Deposits at Stearns Bank, N.A.: I already have other deposit accounts with the new bank.  When combined with balances at this bank, my deposits exceed $250,000.  Are all funds insured?

The accounts transferred to Stearns Bank, N.A. will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

All interest on insured deposits accrued through Friday, August 7, 2009, will be paid at your same rate. Stearns Bank, N.A. will review rates and notify you if interest rates will change.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.

Loans/mortgages: What about my loan or mortgage with First State Bank?

All mortgages and loans have been assumed by Stearns Bank, N.A. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to First State Bank and send your payments to the same address.

Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer. All prior contacts remain the same.

Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

Outstanding Checks: What about checks that I have written on my account with First State Bank?

Your checks will clear up to the available balance in your account. You can continue to use your existing checks.

Safe Deposit Boxes: How can I claim the contents of my safe deposit box?

It is business as usual. You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.

Shareholders: What about my shares of stock?

The First State Bank had no publicly owned stock. Equity shareholders were invested in the holding company, First State Financial Corporation, Sarasota, FL, and not in the bank. Please do not file a claim with the Receiver, rather contact the holding company with any questions you may have:

Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.

Unpaid Bills: I did some work for the bank and have not been paid. What should I do?

All claims against First State Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address: