Arp State Bank has announced that it has adopted a new name effective September 25, 2008. After a unanimous vote by the bank's stockholders, the bank is now American State Bank. President and CEO Steve C. Wiggs stated "thanks to our loyal customers and a long tenured staff, our bank has grown into one of the strongest banks its size in Texas. This financial strength has allowed our board of directors to adopt a long term strategic growth plan including an increased presence in Tyler as well as future offices in other East Texas communities. As we expand beyond the Arp area, we needed a name that is less geographically restrictive. By adopting the American State Bank name, we will be able to continue to utilize our familiar "ASB" logo at all of our locations. For some period of time, the Arp location will continue to operate under the Arp State Bank name, but all other locations will adopt the American State Bank name." Wiggs stated that the name change reflects no change in ownership, adding "our philosophy of providing the very best in personalized banking services will continue as it always has. Our bank is a very traditional community bank that places a major emphasis on customer service, helping them to achieve their financial goals. We're a bank in which local decisions are made by the bankers you know."

"Additionally, we are in the final planning stages for our new building to be located at the intersection of Old Jacksonville Road and Rice Road." Construction of that facility should begin in January and a temporary facility should open in February at the new location site. The 7,600 square foot location in Tyler is expected to be complete in the fall of 2009.

American State Bank, founded in 1911, has earned a 5-star Superior rating for financial soundness for 19 consecutive years by Bauer Financial, Inc., a nationally-recognized rating service for financial institutions. Wiggs also announced that the bank has entered into an agreement to acquire the Texas Bank and Trust - Texarkana banking facility subject to anticipated regulatory approval. Upon consummation of the Texarkana purchase, American State Bank will be an approximately $190 million community bank with full-service banking offices in Arp, Tyler, Chapel Hill and Texarkana.

Wiggs, a former resident of Tyler, most recently resided in Texarkana, serving as President of BancorpSouth for 12 years and President of the Texas Bank and Trust - Texarkana office from March, 2005 until accepting his current position in October, 2007. Wiggs stated, "We are excited about our further expansion into the Tyler market and about bringing our brand of community banking to Texarkana. We believe that both Tyler and Texarkana have stable, diverse economies and are poised for significant growth in the future. We look forward to having the opportunity to work with both communities to be a part of that growth."