FDIC Transaction Account Guarantee

FNBC is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through December 31, 2010, 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.

FNBC's E-Free and Passport checking accounts are ineligible for the coverage under the FDIC's Transaction Account Guarantee Program but are covered under the FDIC normal deposit insurance program which on October 3, 2008 increased from $100,000 to $250,000 per depositor through December 31, 2010.