Notice of Changes in Temporary FDIC Insurance Coverage for Transaction Accounts

Durand State Bank is participating in the FDIC's Transaction Account Guarantee Program. Under that program 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 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, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts ("IOLTAs")

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

E-Statements

This new service is now available at no charge for any accounts that are tied to Internet Banking enrollment. We will send you a notice by e-mail that your statements are available at the Internet Banking site. You are able to see your statements, as well as the fronts and backs of imaged items. There is also a tab showing the newsletter and other information.

**ALERT**

Identity thieves are trying to take advantage of the current financial situation and the concerns of the public about the safety of their deposits. They are sending out false e-mails attempting to get people to go to a fictitious website that supposedly belongs to a federal financial regulator, such as FDIC. At that website, instructions will attempt to get you to provide confidential financial information such as account numbers and social security numbers. No federal financial regulator ever sends unsolicited e-mails to private individuals under any circumstances and they certainly would not ask you to provide this kind of information. If you get such an e-mail, please contact us immediately.

Also, the scam attempts continue to mushroom and while we might like to believe that nobody would be taken in by them, it happens every day. Remember that nobody will send you money for no reason. And you will never be notified about winning a lottery if you do not remember entering one. We know of no lottery that does not give you a ticket or other document indicating you have entered. So If you don't remember it, it did not happen.

If you are not expecting a check in the mail, then it is 99.9% certain that it is a scam. In every instance there will either be (a) instructions to deposit the check then send some part or all of the funds (ususally by wire transfer) to cover "insurance" or "handling" or (b) there will be a phone call following receipt of the check instructing you to do these things. We just recently had examples where the checks were written on personal account checks that were either faked or stolen.

Most of you reading this have demonstrated a certain level of sophistication by merely getting on a computer and coming to this website. So this message is less directed to you as a warning, but more as a reminder for you to warn those that you know who might be vulnerable to these scams.