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CDARS Can Give You Peace of Mind

July 25, 2008

EasEAST LIVERPOOL - Even though headlines report huge financial losses, large businesses in trouble, and turmoil in the securities and other markets, today you can enjoy the total security of up to $50 million in FDIC insurance coverage at 1st National Community Bank.

Through a service called CDARS (pronounced "cedars"), 1st Bank can offer you up to 500 times the standard $100,000 level of coverage found at most banks.

"There is nothing safer than FDIC insurance," said Edward L. Baumgardner, President and CEO of 1st Bank.

"Why? Since the FDIC was created in 1933, no one has lost a single penny in an FDIC-insured account. Because of FDIC insurance, four generations of Americans have been able to sleep soundly at night knowing that their money is fully protected.

"Now with CDARS, we can protect depositors for up to $50 million, and that means that you can sleep soundly without worrying about your money, too," he added.

CDARS is a deposit placement service. Deposits placed through CDARS meet the pass-through insurance coverage guidelines established by the FDIC.

To offer CDARS, a bank must belong to a special network called the Promontory Network. When a customer places a large deposit with a Network member, the bank arranges for the placement of funds into CDs issued by other Network banks - in increments of less than $100,000 to ensure that both principal and interest are eligible for full FDIC protection.

From the customers' point of view, CDARS is one-stop shopping. Regardless of the number of CDs they receive, CDARS customers work with only one bank, sign only one agreement, and receive one account statement.

Currently, more than 1700 institutions, including 1st National Community, are members of the Promontory Network. CDARS, which was first offered in January, 2003, is endorsed by the American Bankers Association.

"If you have ever heard the saying 'As safe as money in the bank,' you know how valuable FDIC insurance coverage is. At 1st Bank, we're delighted we can offer you many times the coverage that most other banks can," Mr. Baumgardner said.

1st National Community Bank | 16924 St. Clair Avenue | East Liverpool, OH 43920 | Phone: 330/385-9200 | Fax: 330/386-7452

Copyright 2006 1st National Community Bank. All rights reserved. Equal Housing Lender - Member FDIC.