FDIC Insurance Update

FDIC Insurance Updates

In this economic time, American Chartered remains strong, flexible and committed to our clients. Depositors can take comfort from the fact that their deposits are insured by the Federal Deposit Insurance Corporation to the maximum extent allowable.

Notice of changes in temporary FDIC insurance coverage for transaction accounts:

All funds in a "noninterest-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 "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.

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

Other Important Notes:

• American Chartered is a well-capitalized institution, the highest category of capitalization as defined by the bank regulators.
• The bank was profitable in 2010.
• Our credit exposure is to the small and medium-sized businesses who are our clients, and to the households near our branches - in other words, "Main Street."
• Our liquidity is strong. Our investment portfolio is of the highest quality, and provides access to more than $500 million of readily liquid assets.