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.

• http://www.fdic.gov/deposit/deposits/insuringdeposits/
• 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

Farmers Bank is participating in the FDIC’s Transaction Account Guarantee Program.  Under that program, through December 31, 2013, all non-interest-bearing transaction accounts 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. For purposes of this Program, NOW accounts and IOLTAs are included in the FDIC's definition of non-interest-bearing account.