First Service Bank is participating in the FDIC's Transaction Account
Guarantee Program. Under that program, through December 31, 2013, all noninterest-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.

Who is the FDIC?

The Federal Deposit Insurance Corporation (FDIC) is an independent
agency of the United States government that protects against the loss of
insured deposits if an FDIC-insured bank or savings association fails.
FDIC deposit insurance is backed by the full faith and credit of the
United States government. Since the FDIC was established, no depositor
has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers funds in deposit accounts, including checking and
savings accounts, money market deposit accounts and certificates of
deposit (CDs). FDIC insurance does not, however, cover other financial
products and services that insured banks may offer, such as stocks,
bonds, mutual fund shares, life insurance policies, annuities or
municipal securities.

There is no need for depositors to apply for FDIC insurance or even to
request it. Coverage is automatic.

To ensure funds are fully protected, depositors should understand their deposit insurance coverage limits. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single accounts, joint accounts, Individual Retirement Accounts (IRAs) and trust accounts.

Basic FDIC Deposit Insurance Coverage Limits *

Single Accounts (owned by one person)

$250,000 per owner

Joint Accounts (two or more persons)

$250,000 per co-owner

IRAs and certain other retirement accounts

$250,000 per owner

Revocable Trust Accounts

$250,000 per owner per beneficiary, subject to specific limitations and
requirements

Non-interest Bearing Transaction Accounts

Unlimited coverage - only at participating FDIC-insured banks and
savings associations

*These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

If you have any additional questions, please feel free to contact your
local banking center.

MEMBER FDIC