State Bank of Alcester
Still Safe and Sound

At State Bank of Alcester, we understand that you might be concerned about the safety of your deposits, particularly with all the news coming out right now about the economy. But let us assure you, your money is safe with us.

Unlike some of the financial institutions you have been hearing about on the news, we know our market and customers. We use conservative, safe lending practices that have successfully served our market and institution for 118 years. Your deposits are also reinvested in this area. We don’t make sub-prime loans in California, Texas or Florida. We make loans that make sense for southeast South Dakota.

Almost ninety years of family ownership has taught us that we don’t have to be the biggest, but we do want to be the strongest and best for our customers. That is why we have built our capital to an all-time high, and our employees give you the best service anywhere. We’ll continue to have money to lend for autos, homes and businesses within the markets we serve.

As a reminder, your deposits are insured up to maximum allowable by the FDIC and our staff would be pleased to assist you in reviewing your accounts and discussing your insurance coverage.

You are the foundation of our success, so we will continue to be good stewards of your hard-earned deposits and trust.

December 31, 2008 (in thousands)
Assets			Liabilities
Cash & Due from Banks	.	4,660	Deposits	.	66,191
Fed Funds Sold	.	1,625	Fed Home Loan Bank	.	8,750
US Treasury Obligations	.	3,998	Other Liabilities	.	3,299
US Gov't Agency & MBS Bonds	.	6,562	.
State & Municipal Bonds	.	3,663	Assets
Loans	62,525	.	Common Stock	1,329	.
Reserve for Loan Losses	578	.	Surplus	2,500	.
Net Loans	.	61,947	Undivided Profits	4,003	.
Other Assets	.	3,617	Total Capital	.	7,832
Total Assets		86,072	Total Liabilities & Capital		86,072

• Revocable trusts
  • The concept of "qualifying" beneficiaries based on certain family relationships has been eliminated. This has been replaced with "eligible" beneficiaries which include any person, non-profit organization or charity.
    
  • For each account owner with combined revocable trust deposit balances of $1.25 million or less at a single bank, the maximum coverage will be determined by multiplying the number of different beneficiaries by $250,000 until December 31, 2013. (This will apply to the vast majority of revocable trust accounts.)
  • For each account owner with combined revocable trust deposit balances of more than $1.25 million and more than five named beneficiaries, coverage is the greater of $1.25 million or, as before, the aggregate of all beneficiaries' proportional interests in the trust deposits, limited to $250,000 per beneficiary until December 31, 2013.
  • In determining coverage for living trust accounts, a life estate interest is valued at $250,000 until December 31, 2013.
  • Irrevocable trusts that spring from a revocable trust upon the death of the revocable trust owner will continue to be insured under the revocable trust rules.
• Deposit accounts
  • All other deposit accounts at FDIC-insured institutions are insured up to at least $250,000 per depositor until December 31, 2013. On January 1, 2014, FDIC deposit insurance for all deposit accounts—except for certain retirement accounts—will return to at least $100,000 per depositor.
  • Insurance coverage for certain retirement accounts, which include all IRA deposit accounts, will remain at $250,000 per depositor.