Certificates of Deposit

Regular & Fixed Rate IRA's
(Effective 08/08/07- 08/13/07)
*Substantial Penalty for Early Withdrawal*

$500 - $9,999.99
Term	Interest Rate	APY
3 Months*	4.18	4.25
6 Months*	4.18	4.25
12 Months*	4.28	4.35
24 Months*	4.43	4.50
36 Months*	4.47	4.55
48 Months*	4.47	4.55
60 Months*	4.47	4.55
$10,000 - $49,999.99
Term	Interest Rate	APY
3 Months*	4.43	4.50
6 Months*	4.43	4.50
12 Months*	4.52	4.60
24 Months*	4.67	4.75
36 Months*	4.72	4.80
48 Months*	4.72	4.80
60 Months*	4.72	4.80
$50,000 & OVER
Term	Interest Rate	APY
3 Months*	4.67	4.75
6 Months*	4.67	4.75
12 Months*	4.76	4.85
24 Months*	4.91	5.00
36 Months*	4.96	5.05
48 Months*	4.96	5.05
60 Months*	4.96	5.05
***CD SPECIALS*** ($500 Minimum)
Term	Interest Rate	APY
9 Months*
18 Months*	4.67	4.75
21 Months*
*Add .25% APY to any term with a new or existing checking or savings account.
Anniversary Special
Term	Interest Rate	APY
50 Months***

*Add .25% APY to any term CD as noted with the * with a new or existing checking or savings account

Business Sweep
(Interest Rates Effective Through 08/14/07)

*Interest Rates may change after the account is open*

Average Available Balance	Interest Rate	APY
$0 - $24,999.99	0.75	0.75
$25,000 - $49,999.99	1.00	1.00
$50,000 - $99,999.99	1.24	1.25
$100,000 - $499,999.99	1.49	1.50
$500,000 - $999,999.99	1.74	1.75
$1,000,000 & Over	1.98	2.00

Variable Rate IRA Savings
(Minimum Deposit $100)
(Interest Rates Effective Through 09/30/07)

*Interest Rates may change after the account is open*

Interest Rate	APY
4.67	4.75

Step-Up / Step-Out CD's

• Minimum Deposit Amount: $5,000
• CD Terms: 24, 36, 48 or 60 Months

Step-Up / Step-Out CD's offer additional benefits such as:

1. The option to increase your rate twice within the term of your CD. Plus, when you increase your rate, you lock in that rate by extending your maturity date one year!
2. The ability to make an annual withdraw of up to 20% of your original investment with no penalty.

Step-up Step-Out disclosure available upon request.

• First State Bank offers checking, savings and certificate of deposit plans to help you meet your financial goals.

• Funds on deposit with First State Bank are insured to $100,000 by the Federal Deposit Insurance Corporation (F.D.I.C.).

• APY = Annual Percentage Yield

• Fees may reduce the earnings on an account.

CD # _______________

Account Terms

Certificates of Deposit and Individual Retirement Account (IRA) Certificates of Deposit

The interest rate for your certificate is _______% with an annual percentage yield of _______%. You will be paid this rate until the maturity date of ______________. The annual percentage yield assume interest remains on deposit until maturity. A withdrawal of interest before maturity will reduce earnings.

Interest begins to accrue on the business day you deposit cash or noncash items (for example, checks).

Certificates of Deposit for a term of less than one year, interest compounds and credits at maturity. Certificates of Deposit one year and over, interest compounds and credits quarterly.

This certificate will automatically renew at maturity. You have a grace period of ten calendar days after the maturity date to withdraw the funds without being charged a penalty. Interest will be paid during the grace period at the interest rate in effect for the renewal term. If the grace period ends on a non-business day, the grace period will be extended to the next business day. There is no penalty for early withdrawal of funds upon the death of the depositor or when the depositor is disabled according to the Internal Revenue Code or is legally declared to be incompetent by court or other administrative body.

There is no penalty for the early withdrawal of funds on an IRA Certificate of Deposit when the depositor attains the age of 59 1/2 years.

After the account is opened, you may not make deposits into or withdrawals from this account until the maturity date.

The early withdrawal penalty on the amount withdrawn will be equal to (a) three month's simple interest at the contract rate for certificates with an original maturity of one year or less or (b) six month's simple interest at the contract rate for certificates with an original maturity of over one year. If the certificate has not yet earned enough interest to pay the penalty, the balance of the interest penalty will be taken from the certificate principal.

We use the daily balance method to calculate the interest on your certificate. This method applies a daily periodic rate to the principal in the account each day.

Rev. 10/98