Established 1899 - Member FDIC
___________________________________

**Notice of changes in temporary FDIC insurance
coverage for transaction accounts starting
1/1/2011**

All funds in a "non-interest-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 $250,000.00 available to depositors under the FDIC's general deposit insurance rules.

The term "non-interest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest.  It does not include other accounts that may earn interest, NOW accounts, money-market deposit accounts, and interest on lawyer trust accounts ("IOLTA's").

Fowler State Bank has participated in the Transaction Account Guarantee (TAG) Program, of which this program expires on December 31, 2010 and is replaced by the FDIC's new rule that provides temporary unlimited coverage for non-interest bearing transaction accounts as described in the paragraph above.

Additionally, the federal government is eliminating the prohibition of paying interest on demand deposits for commercial demand accounts in July 2011.  What this means to you, if you elect to have interest paid on a large commercial demand account, you will not be eligible for the unlimited federal insurance on that account because it only covers transaction accounts that bear no interest and no other type of demand or traditional checking account.  You would have the choice to select unlimited federal insurance or to earn interest on the demand account.  The $250,000.00 insurance would remain in effect, unchanged, on all accounts, whether interest-bearing or not.