In July 2002, Corey J. Couglin was hired as President and Chief Executive
Officer of First State Financial and First State Bank. After numerous board and
management changes over the prior two years, he brought much needed stability to
senior management and a well defined strategic direction. The most significant
change since President and CEO Coughlin joined, is that the employees operating
in diverse markets, Sarasota and Pinellas counties, now work together to
accomplish our strategic goals. Our current operating model has the advantages
of local marketing and decision making with the strength of central financial
controls and corporate guidance. The ability to operate and effectively manage
in multiple markets should serve us well as we expand into new markets in
Sarasota County and the Tampa Bay region.