FDIC Updates

FDIC Dodd-Frank Act Provision Notice

This notice applies to you if you had an interest bearing NOW account that didn't have the ability to earn more than .50% in interest through June 30, 2010 or .25% in interest after June 30 until December 31, 2010.

1st National Bank was a participant in the FDIC's Transaction Account Guarantee Program (TAGP) which allowed unlimited FDIC insurance protection for such accounts. However, the TAGP program ends after December 31, 2010.

Under the Dodd-Frank Act provisions recently enacted by Congress, beginning January 1, 2011, the interest bearing accounts that met the criteria above will no longer be eligible for unlimited deposit insurance coverage. The following notice describes the change in greater detail.

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.

The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts insurance coverage of transaction accounts, visit www.fdic.gov.

For more information about temporary FDIC