Is My Money Safe at Farmers Bank?

Recent news reports in the media have focused on the concerns of safety and soundness of banks. As such, we would like to take this opportunity to remind our customers of the strength and security of Farmers Bank. Our financial institution has been around since 1919 and we have successfully survived many turbulent economic times. Its times like these that you want to stick with a bank that has the experience and strength of knowing how to be around for another 88 years!

Question: Is my money safe at Farmers Bank?

Answer: ABSOLUTELY! Here's why:

• We have a proven track record of being a sound & secure bank since 1919.
• Our bank is very well capitalized & positioned for current needs as well as future growth.
• We have survived many 'economic challenges' such as the Great Depression and several recessions in our 90 year history! - Facts About Farmers Bank
• Our focus has always been on banking services and not on other secondary businesses such as subprime lending.
• We continue to offer competitive loan rates and are currently offering very competitive promotional pricing on bank certificates - see our branches for more detail.

Question: How does FDIC insurance work?

Answer: Deposits of Farmers Bank are covered under FDIC insurance. For details, contact your local branch bank, or refer to our intranet site. The following websites will also provide detailed information.

• Learn how deposit insurance works and whether the FDIC insures your deposits.
• The FDIC Electronic Deposit Insurance Estimator

Question: What is Farmers Bank's position on the mortgage crisis and subprime lending?

Answer: Our bank does not deal in subprime lending and as a result, we do not have any subprime loans on our books.

Question: Could there be other bank failures on the horizon?

Answer: A failure could result if a bank's non-performing loans exceed its assets and reserves. This ratio is a strong measurement of how a bank could become insolvent. The FDIC has a current 'watch list' of 90 banks in the United States & although the list is not public information, indications are that the primary states affected are Colorado, Maryland, Georgia, California and perhaps Florida.

Please call any of our four convenient branch locations for further information or questions about how we can continue to service your financial needs.

Thank you for your continued patronage to Farmers Bank - we look forward to serving you and many more generations of your family for years to come in the future.

Transaction Account Guarantee Program

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.>

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.