FSCB has two options available for home equity loans: The Home Equity Revolving Line of Credit and the Home Equity Term Loan (also referred to as a Second Mortgage).

With the Home Equity Revolving Line of Credit, interest rates are variable, tied to the Wall Street Journal’s published Prime Rate. Typically, rates are either .5% or 1% over the current prime rate, depending on the borrower’s loan-to-value ratio (see the next question for details). The actual interest rate can change monthly. (FSCB loans up to 80% of the home’s appraised value.) With the Revolving Line of Credit, the borrower makes a principal and interest payment each month based on the outstanding balance. As long as there is a principal amount available, that amount may be drawn out. These loans are usually set for a 10-year term.

The Home Equity Term Loan (second mortgage) has a fixed interest rate. The customer draws out the entire balance at once and then repays the loan in monthly principal and interest payments over a set term of five years.

Yes, all vehicles would be considered as collateral, regardless of age. The car value is based on the NADA Book loan values and other sources for commercial vehicles. (The NADA web site provides consumers with retail values only, but the bank uses loan values to figure the maximum amount of the loan.)

www.nada.com

Visit any First State Community Bank to pick up a loan application or call to request an application via mail. Depending on the type of loan you are seeking, your application will be accompanied by a packet of information including bank disclosures, regulatory compliance issues, insurance information and possibly a HUD booklet issued by the U.S. government. Review the information in the packet at your leisure.
To actually apply for a loan, you must complete and sign the application and return it to the bank. A loan officer will then speak with you about your application and the purpose for the loan. The officer will verify your identity, review your financial data and pull a credit report. (Commercial loans require financial statements.)

In most cases, for personal loans, a decision on your loan will be made immediately or within a few business hours. For some loans, additional authorization is necessary, so a decision may take an extra business day. Loans secured by collateral may need to have the collateral verified in person by the loan officer.

For real estate loans, the loan officer will discuss a variety of options for you so that we can fit a loan program to your personal situation. Home appraisals are necessary for home loans, so a loan decision can occur as soon as the appraisal is complete. For commercial loans, the loan officer will review your application with a loan committee before a decision can be made. With any type of loan application, First State Community Bank is committed to providing speedy decisions because we value your time. Therefore, we move your application through our approval process as quickly as possible.

If, at any time, you need assistance in completing your loan application, you should not hesitate to ask for help. Our lending staff is happy to help you.   

A.

When you're ready to apply, you need the most current information on your monthly income and debt, a total of your assets, your Social Security Number and employment information. If you are refinancing, you will need to provide a copy of your homeowner's insurance policy and your last property tax bill. For a complete list, please contact a loan officer.

A.

Loan approval and closing times vary depending on the type of transaction and the complexity of your personal finances. The process can take, on average, anywhere from 14 to 60 days. After you and your loan officer review your application together, the loan officer can give you a better idea of the timeline.

A.

The lock-in represents the interest rate you choose at the time of your application and will be the interest rate used to calculate your monthly payment at the time of your loan closing. The lock-in secures the interest rate during the process of your loan approval as long as your loan is processed and closed prior to the rate expiration date. Most rates are locked-in for 30 days, but others can be locked-in for up to 180 days, depending on the loan program. If you expect interest rates to rise, then it is a good idea to lock in a rate ahead of time.

A.

Yes, you may make principal payments at anytime during your loan term. You may also pay a set amount each month above the normal payment due or make lump sum payments periodically.

A.

An escrow account is an account maintained by the lender to collect funds from the borrower in order to pay the taxes and property insurance due on the loan.

A.

PITI represents how your loan payment is distributed when you make your mortgage payment:
P - Principal
I - Interest
T - Taxes
I - Insurance

A.

A conventional loan is a mortgage not guaranteed by VA or insured by FHA, FMHA or State Bond Agencies.

A.

A jumbo loan is a conventional loan that exceeds the maximum agency (Fannie Mae, Freddie Mac) mortgage amount guidelines for a conventional loan. This amount is currently set at $417,000.

A.

This stands for Private Mortgage Insurance. PMI is required if you borrow over 80.0% of your appraised value/sale price (lender must use the lower of the two values). This protects the lender against financial loss if the loan is defaulted. Some loan programs do not require mortgage insurance. Your loan officer will review all the possible loan programs that fit your individual situation, and you may qualify for one of the no-mortgage insurance loans.

A.

At closing you will sign and receive copies of all legal documents that will be recorded and placed on record regarding the property that you are purchasing or refinancing. Also, you receive all pertinent information regarding your mortgage payment (including a copy of your appraisal) and servicing information for your new loan. If you have questions before the loan closing, don’t hesitate to ask your loan officer or a member of our lending staff.

First State Community Bank has a variety of deposit accounts for individuals including Checking Accounts (FREE, Premier, Premier Plus, Regular, SuperNOW, Horizons Club, Conservator and Not-for-Profit); Money Market Accounts; Savings Accounts (Regular, Minor, Junior Savers Club, Junior Savers + Club, Not-for-Profit and Christmas Club); Certificates of Deposit (CD); and Individual Retirement Accounts (IRA). In addition to the above, we now offer Health Savings Accounts.

For businesses, we offer Express Business Checking, Small Business Accounts and Account Analysis. All businesses may also open Money Market Accounts. Other deposit accounts are dependent upon the legal ownership classification of the business.

• Contributions to an H.S.A., other than employer contributions, are deductible on the eligible individual’s tax return whether or not the individual itemizes deductions and regardless of income level.
• Interest earned on an H.S.A. is tax-free.
• High deductible health insurance plans may lower health insurance costs.
• The IRS offers liberal allowances to integrate with employee benefit plans.
• Employer contributions, if any, are not included in income.
• Distributions from an H.S.A. that are used to pay qualified medical expenses are tax-free.
• Prior to age 65, withdrawals made for non-qualified medical expenses are taxed as ordinary income and a 10% tax penalty is charged.
• After age 65, withdrawals made for non-qualified medical expenses are taxed as ordinary income and will NOT be subject to any other penalties.
• H.S.A.s are “portable” so they stay with the individual if he/she changes employers or leave the workforce.
• H.S.A. funds can be used to pay health insurance premiums but only if collecting Federal or State unemployment benefits or COBRA continuation coverage through a former employer.

• Must be enrolled in a qualified high deductible health insurance plan (HDHP),
• and not covered by another ineligible health insurance plan,
• and not enrolled in Medicare,
• and not claimed as a dependent on someone else’s tax return.

• An HDHP must have a minimum annual deductible of
• $1,150 for an individual,
• $2,300 for a family
• with a maximum annual out-of-pocket total of
• $5,800 for an individual,
• $11,600 for a family.

These figures are for 2008 and are indexed annually.

An H.S.A. may not be used by a person who is:

• Covered by any non-qualified individual or group health insurance plan,
• Eligible for Medicare,
• A dependent on another person’s tax return

Yes, as long as:

• You have individual H.S.A.-qualified insurance,
• Are not covered under the spouse’s insurance plan, and
• Your spouse and dependents are not included in your H.S.A.

You can make a contribution to your H.S.A. each year that you are eligible. The maximum contribution for Self-only coverage in 2008 is $2,900 and the maximum contribution for Family coverage for 2008 is $5,800.

(2009 = $3,000 for Self-only coverage and $5,950 for Family coverage.)

Individuals age 55 and older can also make additional “catch-up” contributions. The maximum annual catch-up contribution is as follows:

2008 = $900
2009 and after = $1,000

Your eligibility to contribute to an H.S.A. is determined by the effective date of your HDHP coverage. Your annual contribution depends on your HDHP coverage. If you are not covered on December 1, your contribution depends on the number of months of HDHP coverage you have during the year (technically, the months where you have HDHP coverage on the first day of the month). For 2007 and forward, if you are covered on December 1, you are treated as an eligible individual for the entire year. However, if you cease to be an eligible individual during the following year, the excess over the pro rated contribution is included in income and subject to a 10 percent additional tax. The amount you can contribute is not determined by the date you establish your account. However, medical expenses incurred before the date your H.S.A. is established cannot be reimbursed from the account. Contributions can be made as late as April 15 of the following year.

FSCB’s H.S.A.s have a number of features:

• Our H.S.A.s are interest-bearing checking accounts with the same tiers and interest as our SuperNOW account
• Separate monthly statements
• $50 minimum initial deposit to open account
• No minimum balance fee
• Additional deposits can be made by automated funds transfers from another FSCB account
• Unlimited check writing
• Uniquely designed debit cards for ease of payment for qualified medical expenses (Point-of-sale transactions only – no PIN-based or ATM withdrawals allowed.)
• Two special H.S.A. check styles are available
• $35 annual fee

The First CheckCard debit card can be used anywhere Visa is accepted. Different merchants have different ways of handling these transactions, but all debit card transactions are processed through your checking account as soon as the merchant “batches out,” so you will need to enter the transaction into your register the same day you make the purchase.

Sometimes you will use your card as a DEBIT transaction. This requires that you enter your PIN number, but you will not sign the receipt. Other times you will use your card as a CREDIT transaction. Most of the time, you will be required to sign the receipt for a CREDIT transaction, but some merchants (such as pay-at-the-pump gas stations) do not require signatures.

You can purchase American Express Travelers Cheques from any First State Community Bank teller. Single-signature Cheques are available in the following packs:

$150 (three @ $50)
$200 (ten @ $20)
$250 (five @ $50)
$300 (three @ $100)
$500 (ten @ $50 or five at $100)
$1000 (ten @ $100)

Single-signature Cheques are purchased with only one name on them. The person who purchases the Cheques is also the person who signs the check upon redemption. The cost to purchase single-signature Cheques is 1% of the total cost. (Horizons Club members and Premier Checking Account holders do not have to pay the fee.)

Double-signature Cheques are available in the following packs:

$150 (three @ $50)
$200 (ten @ $20)
$500 (five @ $100)

Double-signature Cheques are unique in that only one person needs to be present to sign the application for the purchase of the checks, but either party listed on the checks are allowed to sign them upon redemption.

A photo ID is required to purchase Travelers Cheques.

Wiring money is simply a way to electronically move money from an account at one bank to an account at another bank. The sending and receiving banks can be down the block, across town, in another state or even another country. All wires within the U.S. are domestic. Wires to and from another country are international.

To send an outgoing wire from FSCB, the first thing you will need to have is guaranteed funds. You should then ask the recipient of the wire transfer to get specific instructions from the receiving bank. (Some banks do not use the routing number on the check to accept wire transfers, so the instructions will confirm the number you should use.) You will then complete a wire transfer form available at any FSCB location. You will provide your FSCB account information (unless you are a non-customer) as well as the recipient’s full name, address and account number at his/her bank. You will also need to supply the correct name and routing number for the receiving bank and the amount of the transfer.

For incoming wires, you will need to provide to the sender your full name and address as well as your FSCB account number and First State Community Bank’s routing number (081918425). If you do not have an FSCB account and funds are transferred in, then you will receive payment when we have confirmed your identity through proper valid photo ID.

Domestic wire transfer fees are $20 for outgoing wires; $10 for incoming wires (for customers); and $20 for incoming wires (for non-customers). Horizons Club members receive one free wire transfer fee per month, and Premier Checking Account customers receive a 50% discount on domestic wires. International wire transfer fees are charged at a higher rate, so contact your local FSCB to confirm the current fee.

First State Community Bank owns an independent insurance agency – First State Insurance Agency (FSIA). FSIA offers a full line of insurance products through a number of insurance companies; therefore they are able to offer the best possible product and price for each individual customer.

Note that insurance products are not deposits, are not FDIC-insured, are not insured by any federal government agency, are not bank guaranteed and may decrease in value.

First State Bancshares, Inc. owns and operates Conservative Financial Services, Inc. (CFS). CFS offers a full line of investment products including stocks, bonds, mutual funds, insurance products and annuities for individuals and businesses. They specialize in growth and income investing, IRAs, retirement and estate planning, and 401(k) rollovers.

Note that investment products are not deposits, are not FDIC-insured, are not insured by any federal government agency, are not bank guaranteed and may decrease in value.

The best way to answer all of these questions is to enroll in FirstNet on-line banking. You can find answers to all the above questions any time, day or night. FirstNet is FREE for individuals.

If you do not have access to the Internet, then you can call our 24-hour First Access Telephone Banking system. The phone number for your local FSCB’s Telephone Banking is listed on the Locations page. If you are traveling, you may call the Telephone Banking phone number toll-free at (888) 443-FSCB (3722). (LINK TO LOCATIONS PAGE.)

We print account statements virtually every day of the month. Your statement cycle is determined by the type of account(s) you have and the date your account was originally opened. Once you receive your first checking account statement(s), you can expect to receive your subsequent statements at the same time every month. Savings account statements print on or about the 27th day of the month at the end of each quarter (March, June, September and December), so you will receive a statement every three months.

Note that if you are enrolled in FREE FirstNet on-line banking, you may review your current transactions and most recent statement at any time.

You can get to the log-in screen from any page on our web site. On our home page, you will see the flashing log-in link on the right-hand side. Clicking on this will take you directly to the log-in screen. On the left-hand side, you will see the Internet Banking link. Clicking on this option will give you the choice of logging-in or printing an enrollment form.

You may also choose to add the Log-in screen to your Favorites list. When you’re on the Log-in screen, simply go to the Favorites option on your top tool bar, and click on Add to Favorites. Then name the page something like, “FSCB Internet Banking.”

For an electronic payment, funds are debited the same day that the payment is sent, providing it is sent by 11:30am CST.  Electronic payments submitted after 11:30am CST are debited the next day during the bill pay processing. 

Check payment funds are debited from the account when the check clears your account at the bank. Although the bill-pay company processes your request on the date you have scheduled, it doesn’t “hit” your account until the payee accepts the payment and processes it. It’s just like when you send a check in the mail. The funds don’t immediately come out of your account. The funds are only deducted from your account when the creditor has processed your check, the check has been deposited into the business’ account, it has routed through the Federal Reserve system, and it has made it to First State Community Bank where it is processed through your account. This system actually allows you to hold on to your funds as long as possible.

(Be sure to record both types of transactions in your check register so that your account is balanced at all times.)

Check payments are handled in the same manner as a check written out of your checkbook against an insufficient balance. (See the question and answer above for more information.)

Electronic payments are verified for funds availability during processing.  If the funds are available, the account that you selected for the payment will be debited and the information sent on to Princeton for processing.  If the funds are not available, the payment will not be processed and you will receive a message to inform you that the payment could not be sent due to insufficient funds.  Each day the payment will be resubmitted for you until either you delete the payment or the funds are in the account to make the payment.

For an electronic payment, allow 3 to 4 business days from when the payment is submitted.

For a check payment, the check will be in the mail on the same day the payment is submitted if it is submitted before the 2:00 AM processing.  If the check payment is entered before 11:30am CST, the check will be mailed the following morning.  Allow 5 to 7 business days for a check payment.

Please note that we have no control over the U.S. Postal Service.

Visit your local FSCB and ask a Customer Service Representative or the Safe Deposit Box attendant for assistance. Find out what boxes are available. Complete a rental contract for the box you are assigned and confirm that you are given two keys to your box. (The keys may or may not have the box number engraved on them.)

If you are already a customer at FSCB, then before you sign the contract, you will simply need to verify your identity with a license or other state-issued photo ID. First-time customers will need to provide additional information to be assigned a customer number. In this case, you will need to provide your date of birth, physical street address, home and work phone numbers, employer name and address, Social Security number and drivers license or state-issued photo ID.