First State Bank Convenes 112th Annual Meeting

In his annual report to stockholders, First State Bank of Malta President Robert Galt mentioned that 2015 was a challenging year but happily reported the bank had a profitable year with a 3-precent growth in total assets and deposits.

"The First State Bank's equity position increased to $20,200,551 compared to $19,284,497 in 2015," said Galt. "This is the first time the Bank's equity ended the year above $20 million. The challenges we are experiencing in the ag markets have tested First State's liquidity as well. The bank's overall loan growth for 2015 was approximately 26%. Loan growth has played a major role in our increased bottom line, but we remain cautiously optimistic about this continuing. Some of this growth has been a result of area producers holding on to their production longer than normal due to poor prices and the unreliability of the grain elevators. With oil prices way down and less production to move on the rail, maybe it's possible that the elevators will have an easier time scheduling grain trains in 2016. For our farm producers, I hope this is the case."

FSB saw growth of approximately 3-percent resulted in total assets and deposits of $143,000,000.00 and $123,000,000.00 respectively

Galt said the bank's farm customers were once again saddled with high costs and low market prices. The livestock producers had the opportunity to lock in profits and thankfully, most did. Uncertainty with the commodities markets will keep our area producers a little on the skittish side.

Galt said First State Bank is fortunate to be able to interact with so many great customers.

"We see on a daily basis the dedication and perseverance these folks pour into their operations. The First State Bank appreciates the loyalty they entrust in our bank and looks forward to doing whatever we can to insure their future success.

Federal regulations have forced most community banks to add outside services to help them create and maintain adequate compliance departments. The cost of this compliance has added another level of burden to the small banks. First State has an excellent compliance officer in Sharon Young, and through the hard work of this office and many other employees within our bank, we have been able to meet the mandates that these new regulations have passed down."

In December of 2015, the Federal Reserve Board voted to test their interest rate machine by raising the Fed Funds rate by a quarter of a percent. This increase was the first since June of 2006.

"Confusing to me is that the Feds usually use this rate to control inflation and keep the overall economy from overheating," said Galt. "I don't think anybody feels our economy is overheating at this time. Unemployment continues to hang around 5%, and that only counts those people actively seeking employment. As of the end of November, annual inflation was calculated at .5%. Another false negative is the strength of the U.S. dollar worldwide. One would think this to be a good thing; however it certainly plays a role in why U.S. exports continue to be low.

The First State Bank of Malta will complete its 113th year of existence in a couple of months. A major part of the community bank design is to not only be stewards of our customer's deposits and loans but to be active and viable members of our community. The staff, officers, and directors of The First State Bank contribute countless hours to many different boards, committees, and clubs in our area. PC Healthcare, Mustang Foundation, Phillips County Stockgrowers, Kiwanis, Malta Athletic Club, Rotary, Women's Club, area Churches, and many other area organizations continue to thrive because of the time and effort given by these people. It was quite impressive for me to actually take note of our employee's involvement outside of the bank. This is a very good way for our bank to ensure that people know who we are, and that we care about Phillips County."

At the beginning of the stockholders meeting, Galt pointed out some shareholders of the community who are, sadly, no longer with us including Madeline Itcaina, Dolores Campbell, Anne Caves, and two golfing legends, Doc Totman and Donnie Hould.

"All will be missed; however, many memories will insure, never forgotten," said Galt.

The 112th annual meeting also saw members elected to serve on FSB's board. They are: R.D. Scott (Chairman)-1983 (beginning Ron's 54th year associated with FSB), Bruce Hould-2001, Michael Morrison-2002, Frank White-2005, Scott Robinson-2011, Robert Galt-2014, and Martin Johnson-2015. Terry Skones was once again elected Sec/Treas of the board. During the Annual meeting of F.S. Banco, Inc., all of the previously mentioned directors plus Lary Poulton and Larry Smith were elected to serve on the Holding Company board.