First National Bank is participating in the FDIC's Transaction Account Guarantee Program.

Under that program, through December 31, 2010, all non-interest bearing transaction accounts, IOLTAs, and interest bearing transaction accounts earning 0.25 percent or less are fully guaranteed by the FDIC for the entire amount in the account.

Coverage under the Transaction Account Guarantee Program is in addition to, and separate from, the coverage available under the FDIC's general deposit insurance rules.

The Transaction Account Guarantee Program is a sub-part of the FDIC's Temporary Liquidity Guarantee Program. For complete details, see the FDIC's web site.

What does this mean to you?

It means that our customers that are in our non-interest bearing checking accounts are fully insured for the entire amount of their account under the program. In addition, the Program covers accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs) and functionally equivalent accounts; and Negotiable Order of Withdrawal accounts (NOW accounts) with interest rates no higher than 0.25 percent.

How does First National Bank's participation in this program benefit me?

This added coverage is especially valuable to our small businesses that have payroll and other operating accounts guaranteeing that they remain fully insured within their transactional account. To our customers with personal accounts, this additional coverage allows all funds maintained in the covered accounts to be fully insured under the program.

Does this take the place of my FDIC Insurance?

The FDIC's Transaction Account Guarantee Program is in addition to, and separate from, the coverage available under the FDIC's general deposit insurance rules. The Transaction Account Guarantee Program will remain in effect until December 31, 2010.

Where can I go if I still have questions?

You can call FDIC toll-free at 1-877-ASK-FDIC (877-275-3342) from 8:00 am until 8:00 pm (Eastern Time) or contact them online at www.fdic.gov.  You can also call First National Bank directly at 1-270-754-3300.