Basic Insurance.
Basic FDIC insurance has been increased from $100,000 to $250,000 per depositor per insured financial institution. The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor.

Temporary Liquidity Guaranty Program.
First Southern Bank participates in the FDIC's Transaction Account Guarantee Program. This means that all funds held in non-interest earning checking accounts, regardless of amount, are fully guaranteed by the FDIC through June 30, 2010. For purposes of this program, NOW accounts paying no more than 0.50% interest through June 30, 2010 are considered by the FDIC as a non-interest bearing account.

Accounts with transfer agreements ("sweep" arrangements) in connection with non-interest earning First Southern Bank checking accounts, where funds are transferred to an interest-earning account, any funds transferred or swept into the interest earning account will not be fully guaranteed under the FDIC's Transaction Account Guarantee Program. However, the funds that are transferred or swept into the interest earning account will continue to be insured through December 31, 2013, for up to $250,000 under the FDIC's general deposit insurance rules.

Emergency Economic Stabilization Act of 2008