Index

First State Bank and Trust Company recognizes and respects Customers' expectations of privacy. We therefore only collect information about our customers that we feel is useful and allowed by law to administer the customer's business and to provide products, services and other opportunities to our customers. The Bank pledges to provide current, accurate and complete information to our customers. We also pledge to respond to our customers' requests to correct inaccurate information in a timely manner.

We continually strive to maintain complete and accurate information about you and your accounts. Should you ever believe that our records contain inaccurate or incomplete information about you, please notify us. We will investigate your concerns and correct any inaccuracies.

The Bank's employees should limit himself or herself to only the customer financial information needed to transact regular business. Employees are educated on the importance of maintaining the confidentiality of customer information and on these Privacy Principles. In enforcing employee privacy responsibilities, any employee act that is in direct conflict of this policy will be subject to appropriate disciplinary measures.

The Bank is committed to the security of your financial and personal information. All of our operational systems are in a secure environment that protects your account information from being accessed by third parties. We maintain and grant access to customer information only in accordance with our internal security standards.

All customer sensitive documents will be shredded when they are no longer of use to the Bank.

The Bank shall not reveal specific information about customer accounts or other personally identifiable data to unaffiliated third parties for their independent use, except for the exchange of information with reputable information reporting agencies to maximize the accuracy and security of such information or in the performance of bonafide corporate due diligence, unless

1. the information is provided to help complete a customer initiated transaction;
2. the customer requests it;
3. the disclosure is required by/or allowed by law (i.e. subpoena, investigation of fraudulent activity, etc.); or
4. the customer has been informed about the possibility of such disclosure for marketing or similar purposes through a prior communication and is given the opportunity to decline.

If personably identifiable customer information is provided to a third party the Bank will insist that the third party adhere to similar privacy principles that provide for keeping such information confidential.

At First State Bank and Trust Company, we value our customer relationships. We want you to understand how we use the information you provide and our commitment to ensuring your personal privacy. If you have questions about how the Bank protects your confidential information, please call the Bank at 402-721-2500.

Online Privacy

First State Bank and Trust Company places great importance on privacy and security for our customers using our online products. Therefore, we have instituted the necessary security procedures related to on-line banking transactions. To ensure that your personal banking information remains secure, the Bank uses encryption technology such as Secure Socket Layer (SSL) on our Web sites to transmit information between the Bank and you. Please read our Security Statement for detailed information.

COPPA Privacy Notice (Children's online privacy protection act)

First State Bank and Trust Company, via our online banking products, does not knowingly collect or use personal information from children under age 13 without receiving verifiable consent from their parents. If a parent or guardian feels their child has provided personally identifiable information to the Bank, please contact us. If the parent or guardian reviews the child's information submitted and refuses to permit its further use, the parent or guardian may contact us. The Bank will then use all reasonable efforts to remove the child's information from the Bank's records.

Electronic Fund Transfers
Your Rights and Responsibilities

Indicated below are types of Electronic Fund Transfers we are capable of handling, some of which may not apply to your account. Please read this disclosure carefully because it tells you your rights and obligations for the transactions listed. You should keep this notice for future reference.

Preauthorized credits. You may make arrangements for certain direct deposits to be accepted into your checking or savings account(s).

Preauthorized payments. You may make arrangements to pay certain recurring bills from your checking or savings account(s).

Bill Payment - Via computer or other electronic means.

Electronic check conversion - types of transfers. Your check can result in an electronic funds transfer. This can happen in several ways. For example:

• You can purchase goods or pay for services and authorize a merchant or service provider to convert our check into an electronic funds transfer.
• At the time you offer a check to a merchant or service provider, you may be asked to authorize the merchant or service provider to electronically collect a charge in the event the check is returned for insufficient funds. Paying such a fee electronically is an electronic funds transfer.

Your authorization to make these types of electronic funds transfers may be expressed in writing or implied through the posting of a sign.

24-Hour Cash Card ATM Transfers - types of transfers, dollar limitations, and charges - You may access your account(s) by ATM using your 24-Hour Cash Card and personal identification number or Check Card and personal identification number, to:

• make deposits to checking account(s)
• make deposits to savings account(s)
• get cash withdrawals from checking or savings account(s)
  • you may withdraw no more than $250.00 per day
  • there is a charge of $1.50 per withdrawal at ATMs we do not own or operate
• transfer funds from savings to checking account(s)
• transfer funds from checking to savings account(s)
• get information about:
  • the account balance of your checking account(s)
  • the account balance of your savings account(s)

Some of these services may not be available at all terminals.
Please also see Limitations on frequency of transfers section regarding limitations that apply to ATM transfers.

Types of Check Card Point-of-Sale Transactions - You may access your checking account(s) to purchase goods (in person or by phone), pay for services (in person or by phone), get cash from a merchant, if the merchant permits, or from a participating financial institution, and do anything that you can do with a credit card (that a participating merchant will accept with a credit card).

Point-of-Sale Transactions - dollar limitations - Using your card:

• You may not exceed $250.00 in transactions per day (limit may be raised upon approval)

Please also see Limitations on frequency of transfers section regarding limitations that apply to Check Card transactions.

Currency Conversion. When you use your Check Card at a merchant that settles in currency other than US dollars, the charge will be converted into the US dollar amount. The currency conversion rate used to determine the transaction amount in US dollars is either a government-mandated rate or the wholesale market rate in effect the day before the processing date, increased by 1%.

Advisory Against Illegal Use. You agree not to use your card(s) for illegal gambling or other illegal purposes. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the cardholder may be located.

Internet Banking- You may access your account(s) electronically through the internet to:

• review account activity and history
• transfer funds between your deposit account(s) and to your loan account(s) for payments
• get information about the account balance of your deposit and loan accounts
• make bill payments from a preauthorized account

Bill Payment Transactions- Funds for all bill payments will be debited from your specified account on the day the payment is scheduled to be transmitted to the receiver. All online banking payments require sufficient time for the receiver to process the payment and credit your account. We recommend that you contact your individual payee(s) for any restrictions that may apply. We are not liable for any service fees or late charges levied against you by payees you select to receive payments through the Bill Payment service.

You may not make payments to federal, state, or local tax agencies or payments of government fees or court-directed payments using the Bill Payment service.

You agree to promptly notify us at the address set forth in this disclosure if you receive notice from a payee that a payment you made using Bill Payment has not been completed or remains unpaid. We will not be liable to you for any damages (including, but not limited to actual, direct, indirect, special, or consequential damages) to the extent that your failure or delay in notifying us that a bill payments was not made prevents us from avoiding or alleviating such damages.

You are responsible for any monetary loss or penalty (e.g., non-sufficient funds fee) that you may incur due to the lack of sufficient funds or other conditions that may prevent the withdrawal of funds from your account to transact a bill payment that you have requested.

You agree to notify us in writing if you decide to discontinue the Bill Payment service.

We will charge $4.95 for First State Bank & Trust Company's Bill Payment service for up to 20 paid bills per month. Additional bill payments are $.50 each.

Limitations on frequency of transfers. In addition to those limitations on transfers elsewhere described, if any, the following limitations apply:

• Transfers from a money market account to another account or to third parties by preauthorized, automatic, or telephone transfer are limited to six per statement cycle with no more than three by check or similar order to third parties.

Fees

• We do not charge for direct deposits to any type of account.
• We do not charge for preauthorized payments from any type of account.
• We charge $12.00 each year if your account is set up to use an ATM card.
• The charge for your card (whether or not the card is used in the period) is $1.00 per month. This only applies to the Check Card.
• We charge $5.00 to replace a lost or stolen ATM card or Check Card.

Except as indicated elsewhere, we do not charge for these electronic fund transfers.

ATM Operator/Network Fees. When you use an ATM not owned by us, you may be charged a fee by the ATM operator or any network used (and you may be charged a fee for a balance inquiry even if you do not complete a fund transfer).

Documentation

• Terminal transfers. You can get a receipt at the time you make any transfer to or from your account using one of our automated teller machines or point-of-sale terminals.
• Preauthorized credits. If you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call us at 402-727-0219 to find out whether or not the deposit has been made.
• Periodic statements.

You will get a monthly account statement from us for your checking accounts.

You will get a monthly account statement from us for your savings accounts, unless there are no transfers in a particular month. In any case, you will get a statement at least quarterly.

Preauthorized Payments

• Right to stop payment and procedure for doing so. If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Here is how:
  Call or write us at the telephone number or address listed in this disclosure in time for us to receive your request 3 business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call.
• Notice of varying amounts. If these regular payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.)
• Liability for failure to stop payment of preauthorized transfer. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

Financial Institution's Liability

Liability for failure to make transfers. If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:

1. If, through no fault of ours, you do not have enough money in your account to make the transfer.
2. If you have an overdraft line and the transfer would go over the credit limit.
3. If the automated teller machine where you are making the transfer does not have enough cash.
4. If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.
5. If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.
6. There may be other exceptions stated in our agreement with you.

Confidentiality

We will disclose information to third parties about your account or the transfers you make:

1. where it is necessary for completing transfers; or
2. in order to verify the existence and condition of your account for a third party, such as a credit bureau or merchant; or
3. in order to comply with government agency or court orders; or
4. as explained in the separate Privacy Disclosure.

Unauthorized Transfers

1. Consumer liability.
   Generally. Tell us AT ONCE if you believe your card and/or code has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within 2 business days, you can lose no more than $50 if someone used your card and/or code without your permission. (If you believe your card and/or code has been lost or stolen, and you tell us within 2 business days after you learn of the loss or theft, you can lose no more than $50 if someone used your card and/or code without your permission.)

   If you do NOT tell us within 2 business days after you learn of the loss or theft of your card and/or code, and we can prove we could have stopped someone from using your card and/or code without your permission if you had told us, you could lose as much as $500.

   Also, if your statement shows transfers that you did not make, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove that we could have stopped someone from taking the money if you had told us in time.

   If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

   Additional Limit on Liability for Check Card. Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen Check Card. This additional limit on liability does not apply to ATM transactions, to transactions using your Personal Identification Number which are not processed by VISA, or to commercial cards.

2. Contact in event of unauthorized transfer. If you believe your card and/or code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed in this disclosure.

Error Resolution Notice

In case of errors or questions about your electronic transfers, call or write us at the telephone number or address listed in this disclosure, as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

1. Tell us your name and account number (if any).
2. Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.
3. Tell us the dollar amount of the suspected error.

   If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

   We will determine whether an error occurred within 10 business days (5 business days for Check Card point-of-sale transactions and 20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (5 business days for Check Card point-of-sale transactions and 20 business days if the transfer involved a new account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened.

   We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation.

   You may ask for copies of the documents that we used in our investigation.

Your Ability to Withdraw Funds

This policy statement applies to all deposit accounts.

Our policy is to make funds from your cash and check deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once the funds are available, you can withdraw them in cash and we will use the funds to pay checks that you have written.

Please remember that even after we have made funds available to you, and you have withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.

For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before closing on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after closing or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

If you make a deposit at an ATM before 2:30 p.m. on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit at an ATM after 2:30 p.m. or on a day we are not open, we will consider that the deposit was made on the next business day we are open.

If we cash a check for you that is drawn on another bank, we may withhold the availability of a corresponding amount of funds that are already in your account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.

If we accept for deposit a check that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available for withdrawal until the time periods that are described elsewhere in this disclosure for the type of check that you deposited.

Longer Delays May Apply

Case-by-case delays. In some cases, we will not make all of the funds that you deposit by check available to you on the first business day after the day of your deposit. Depending on the type of check that you deposit, funds may not be available until the fifth business day after the day of your deposit. The first $100 of your deposits, however, may be available on the first business day.

If we are not going to make all of the funds from your deposit available on the first business day, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail you the notice by the day after we receive your deposit.

If you will need the funds from a deposit right away, you should ask us when the funds will be available.

Safeguard exceptions. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances:

• We believe a check you deposit will not be paid.
• You deposit checks totaling more than $5,000 on any one day.
• You redeposit a check that has been returned unpaid.
• You have overdrawn your account repeatedly in the last six months.
• There is an emergency such as failure of computer or communications equipment.

We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the eleventh business day after the day of your deposit.

Financial Privacy Policy

• First State Bank & Trust Company collects information you might consider to be private, such as account number(s), social security number, income and net worth about you from the following sources:

• Information we receive from you on applications or other forms;
• Information about your transactions with us or others; and
• Information we receive from a consumer reporting agency.

  We do not disclose any information you might consider to be private about you to anyone, except as permitted by law such as: reports to credit bureaus, IRS Reporting, responses to subpoenas, search warrants, summons.

  If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.

  First State Bank & Trust Company restricts access to your personal and account information to those employees who need to know that information to provide products or services to you. First State Bank & Trust Company maintains physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

First State Bank & Trust Company
1005 East 23rd Street, PO Box 549
Fremont, NE 68026-0549

Business Day: Monday through Friday
Excluding Federal Holidays
Phone: 402-721-2500

MORE DETAILED INFORMATION IS AVAILABLE ON REQUEST