PREFERRED BANKING TERMS AND DEFINITIONS

• For checking accounts, the minimum daily balance means, the amount of principal which is retained in the account each day to avoid a service charge. We use the daily balance method to accrue interest using the ledger balance. The ledger balance is the full amount of principal in the account each day.

• For commercial checking, an Earnings Credit can be used to offset monthly service and activity charges. The credit is based on the 90-day Treasury Bill rate.

• For savings accounts, interest is compounded daily and credited quarterly.

• For all accounts with check writing, we clear all items posted to that account from largest to smallest.

• For Certificates of Deposit (CD’s), interest credited to this account may be withdrawn at any time without penalty. After the account is opened, you may not make deposits or withdrawals, other than interest credited to the account, until the maturity date. If any of the principal is withdrawn before the maturity date, a penalty will be imposed. These accounts will automatically renew at maturity for the same term at an interest rate in effect for similar time deposits at the time of renewal. You will have seven (7) calendar days to withdraw your funds without penalty.

• All loans subject to credit approval.

• Other restrictions may apply.

• Subject to change without notice.