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First State Bank's 20204 Annual Report

Annual Report 2024

All In: Shared Purpose for Lasting Impact

From the CEO

Reflecting on the past year, I am filled with immense pride and gratitude for the unwavering support and dedication of our community, customers, and employees. At First State Bank, we believe that our advantage is the dedication we demonstrate to the communities we serve. To us, it’s not about saying we care, it’s about showing it every day.

This year, as we gear up to launch our new website, we’ve been reflecting on our journey. While our brand has undergone a transformation over the years, we’ve stayed true to our roots. In this annual report, we’re excited to unveil our new mission and vision that’s driven by our organization’s core values. These guiding principles are not just words on paper; they are the foundation of our commitment to you and the communities we serve.

I invite you to also check out the accompanying video where I share more about our journey and successes from the past year.

Thank you for being a part of our journey. Together, we will continue to navigate financial milestones with confidence and ensure prosperity for future generations.

Warm regards,

Luanne Cundiff's Signature

President & CEO, First State Bank

Moving Forward, Together

Rooted in Values

At First State Bank, we’ve taken a moment to reflect on our history and see how far we’ve come as an organization.

Although technology has dramatically changed how we operate as a bank, our commitment to service has remained the same. Through collaborative workshops with employees at all levels, we identified our shared beliefs, purpose, and long-term goals. We are now proud to share the new core values, mission, and vision statements that will unify our team.

Core Values

Trust:

Your Confidence, Our Commitment

Trust isn’t a given; it’s earned—every day, in every interaction. We don’t just hold your money; we hold your confidence. That means honest conversations, clear guidance, and decisions that put your best interests first. When we say we’re here for you, we mean it.

Integrity:

Built on Principles, Not Shortcuts

We don’t chase trends, cut corners, or make promises we can’t keep. Our word is our bond, and our handshake still means something. At our core, integrity is about being accountable to you, our team, and the community we serve—because doing right by people is the only way we do business.

Community:

Investing in the Places We Call Home

This isn’t just where we do business—it’s where we live, where our kids go to school, and where we invest our time and resources. With deep roots in the communities we serve, we’re committed to helping local businesses grow and supporting families at every stage of life. Banking should feel personal because it is, and we’re here to grow alongside the communities we call home.

Aligned in Purpose

We entered 2025 with a renewed sense of purpose and a fresh outlook for the future, all with the goal of being stronger as a team. Informed by our core values, we developed a mission statement that is grounded in the present, reminding us of our purpose, who we serve, and how we serve them.

While the mission is based in today, we also needed a future-driven statement that keeps us focused on our long-term goals. The vision statement we’ve developed inspires us to do the work that matters most, reminds us of our intentions, while lending a framework for strategic planning.

These statements are more than just words; they reflect our dedication to building a bank that invests in its customers and community. We invite you to share your thoughts and experiences with us, as your feedback is crucial in helping us live up to these values every day.

Our Mission

Through genuine relationships, expert guidance, and a deep commitment to reinvesting in our community, we help you navigate financial milestones with confidence—because when you succeed, we all do.

Our Vision

Our vision is to never lose sight of our purpose—serving people, strengthening communities, and ensuring prosperity for future generations.

As a rabbi, I especially appreciate the emphasis First State Bank places on financial education and ethical prosperity. Empowered people make informed decisions that help build a brighter future for our entire community.

Rabbi Chaim Landa, Chabad Jewish Center of St. Charles County

Invested Here

Local Prosperity. For Real.

At First State Bank, we believe that a strong community starts with a strong, independent local bank. As the banking industry becomes more transactional in nature, we still take the time to get to know our customers and their families, advocate for their goals, and provide solutions that empower them to build a strong financial future. Our experienced team is uniquely equipped to advocate for our diverse customer base, helping them navigate complex financial decisions with confidence. Our loan committee lives and works locally, lending to industries, businesses, and individuals that may have been overlooked at larger institutions, while helping to maintain our long legacy of financial stability. Together, we are investing in a brighter future for our community—one that is rooted in trust, integrity, and a deep commitment to ethical prosperity.

But what is ethical prosperity? It’s about financially investing in our community—reinvesting deposits into loans that benefit our local economy. It’s about cultivating relationships with government officials, federal regulators, and community partners.

These relationships help us advocate for policy that positively impacts community banks like ours, help us navigate the complexity of our highly regulated industry, and keep us active and engaged in local initiatives. Whether we’re educating a college student on building their credit or investing the time to help develop our municipality’s 10-year plan, we’re involved, we’re invested, and we care.

Our commitment to ethical prosperity is exemplified by our bank president, Luanne Cundiff, who serves as the chairperson of the Federal Reserve’s Community Depository Institutions Advisory Council (CDIAC). This unique position allows First State Bank to provide feedback on nationwide policy decisions that impact our community bank and the local economy. By advocating for initiatives that benefit small businesses, make housing more affordable, and address the diverse financial concerns of our customers, we ensure that our community thrives.

First State Bank and Luanne’s commitment to community banking is proven specifically through her role at the CDIAC. The input of our current economic state, lending conditions, and other issues happening in our hometown is important for the Board of Governors to hear.

Renee Vogelgesang, SVP, Risk Management and Commercial Lending

Strengthening Our Community Together

First State Bank is in the business of creating opportunities close to home—not just for its employees, but for everyone who banks with us. In fact, in 2024, up to 94% of our deposits were reinvested in the local communities we serve. As we grow, your deposits help us to support local businesses, homebuyers, and community initiatives.

“It isn’t often that you get to see your banker at festivals, at the grocery store, and walking down Main Street. To me, First State Bank is more than just a banking relationship, they are part of the fabric of what makes St. Charles great. They reinvest the funds they manage back into our community, strengthening us all.”

Mark A. Hollander, Executive Director, Vision Leadership
Joyce Gamble, AVP and branch manager, and Jill Scott, business development officer, interact with local seniors at the St. Charles County Senior Fair in St. Charles, MO.

Local Banking, Lasting Impact

Local Commitment, Long-Term Stability

We’ve long been committed to being an independent bank and we’re proud to say we’ve never been acquired. Our bank isn’t a branch of a big corporation that invests its deposits outside of our community. We’re deeply rooted in the communities where we serve, and our decisions are made with the best interests of our neighbors in mind—not outside investors. Our unique position as an independent bank with an Employee Stock Ownership Plan (ESOP) means we can keep jobs and financial resources in our community.

As an organization, we make a concerted effort to reinvest in our local economy—starting with children making their first deposit, to new homeowners, to retirees visiting a thriving local breakfast spot. Our loan committee lives and works in the same community we do. Every day, we make decisions focused on facilitating the right opportunities so locals can grow.

Mary Alsup-Niedegerke, Executive Vice President of First State Wealth Advisors, embodies our bank’s commitment to our customers’ growth. Mary’s 35 years of expertise has propelled her to the top 1.4% of all LPL bank and credit union financial advisors and put our bank in the top 7% of all LPL Institution programs combined.

$7.5 MM Total loans assisting in community development. $45.0 MM Total assistance to help provide affordable housing.

Better Service, Stronger Relationships

Our ESOP gives employees a stake in the success of the bank. That means we truly get to know our customers and their families—helping prepare them for life’s milestones. We offer a level of service that’s simply hard to find elsewhere. (Just drop-in without an appointment, and you’ll see why!) Our commitment to your financial success is sincere because we live where you do. When you bank with us, you’re working with people who care just as much about this community as you do.

“I’m proud that our community bank is certified dementia and aging-friendly. I want to get the word out that First State Bank truly cares about our older customers and those affected by dementia. We want them to be treated with respect every time they walk through our doors and that’s why our team is trained to provide them the thoughtful service they deserve.”

– Jill Scott, Business Development Officer

Financials

First State Bancshares, Inc. and Subsidiary

Consolidated Balance Sheet

December 31, 2024 (Audited)

ASSETS  
Cash and Due From Banks $ 7,017,197
Investments in Available-For-Sale Securities, at Fair Value 33,892,158
Restricted Stock, at Cost 18,423,450
Mortgage Loans Held for Sale 16,276,859
Loans Receivable 436,138,751
Less: Allowance for Loan Loss (6,622,502)
Net Loans
 429,516,249
Accrued Interest Receivable 1,933,092
Premises and Equipment, Net 6,099,243
Life Insurance Contracts, at Cash Surrender Value 9,311,002
Deferred Tax Assets, Net 833,369
Intangible Assets, Net 5,795,752
Other Assets 7,186,102
Total Assets
 $ 536,334,473

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY  
Noninterest-Bearing Deposits $ 101,603,323
Interest-Bearing Deposits 289,334,789
Total Deposits
 390,938,112
Federal Funds Purchased ‐
Federal Home Loan Bank Advances and Repurchase Agreements 57,210,000
Accrued Interest Payable 1,190,633
Lease Liability 352,403
Accrued Expenses and Other Liabilities 6,581,361
Total Liabilities
 456,272,509
Common Stock 10,155,000
Retained Earnings 92,330,924
Treasury Stock, at Cost (19,410,399)
Accumulated Other Comprehensive Income (3,013,561)
Total Stockholders’ Equity
 80,061,964
TOTAL LIABILITIES
AND STOCKHOLDERS’ EQUITY
 $ 536,334,473

Our bank’s robust capital position makes us a secure and reliable place to keep your money. With the financial strength to absorb losses, we’re positioned to remain solvent during economic downturns, keeping your money safe and protected.

Strong Capital Position Balance Sheet

First State Bank has a strong capitol position

Consolidated Statement of Income

December 31, 2024 (Audited)

INTEREST INCOME  
Total Interest Income
 $ 29,114,909
Interest Expense  
Total Interest Expense
 10,510,613
Net Interest Income
 18,604,296
Provision for Possible Loan Losses                  ‐
Net Interest Income After Provision for Possible Loan Losses 18,604,296
NONINTEREST INCOME  
Mortgage Banking Revenues 18,675,542
Brokerage Fees and Commissions 2,176,658
Other Noninterest Income 1,025,897
Total Noninterest Income
 21,878,097

 

 

NONINTEREST EXPENSE  
Salaries and Employee Benefits 23,660,485
Occupancy and Equipment Expense 1,731,599
Data Processing Expense 3,100,691
Other Noninterest Operating Expenses 3,519,560
Total Noninterest Expense
 32,012,335
Income Before Income Taxes 8,470,058
Provision for Income Taxes 1,562,932
NET INCOME $ 6,907,126

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
Vice President &
Chief Financial Officer
Lighthouse for the Blind

Ray Bayer
Retired President & CEO
MOHELA

Michael Eagan
Retired Senior Vice President
Advanced Technologies Group

John W. McClure
Retired Bank Executive
Mercantile Bancorporation