Southwest National Bank

TRUTH-IN-SAVINGS DISCLOSURES

CONVENIENCE CHECKING ACCOUNT

Minimum balance to open the account - You must deposit $100.00 to open this account.

Additional information:

No monthly maintenance fee or per check fee.
No minimum balance required.
No charge for ATM transactions at ATM's owned by Southwest National Bank. All others are assessed a charge of $.75 each.
No charge for point-of-sale or debit card transactions at merchant locations.
Checks will not be returned with your monthly statement.

REGULAR CHECKING ACCOUNT

Minimum balance to open the account - You must deposit $100.00 to open this account.

Fees:

Monthly maintenance fee - $5.00 if balance is less than $200.00 on any day in the statement cycle.

Monthly maintenance fee - $4.00 if balance is at least $200.00 on every day but less than $400.00 on any day in the statement cycle.

Monthly maintenance fee - $3.00 if balance is at least $400.00 on every day but less than $500.00 on any day in the statement cycle.

Monthly maintenance fee - $0.00 if balance is $500.00 or more on every day of statement cycle.

A 20¢ per item transaction fee will be charged each statement cycle if balance falls below $500.00 any day in the statement cycle.

PLATINUM CHECKING ACCOUNT
(For customers age 50 or over)

Rate Information - Your interest rate and annual percentage yield may change. Frequency of rate changes - We may change the interest rate on your account every day. Please see rate chart for current interest rate information.

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance fee of $5.00 will be imposed every statement cycle if the balance in the account falls below $100.00 any day of the cycle.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Additional information:

Additional benefits are provided with this account. Please inquire for details.

SILVER CHECKING ACCOUNT

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to obtain the annual percentage yield disclosed - You must maintain a minimum balance of $500.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Fees:

If your balance falls below $500.00 on any day in the month we will impose a maintenance fee of $8.00 for that statement cycle.

If your balance is $500.00 or more on every day in the month we will impose a maintenance fee of $6.00 for that statement cycle.

SUPER NOW ACCOUNT

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $1,000.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance fee of $8.00 will be imposed each monthly statement cycle if the average daily balance for the monthly statement cycle falls below $1,000.00. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period.

Minimum balance to obtain the annual percentage yield disclosed - You must maintain a minimum average daily balance of $1,000.00 to obtain the disclosed annual percentage yield. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is the monthly statement cycle.

Average daily balance computation method - We use the average daily balance method to calculate the interest on your account. This method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is the monthly statement cycle.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

REGULAR SAVINGS ACCOUNT

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every quarter. Interest will be credited to your account every quarter.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $100.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance fee of $6.00 will be imposed on each quarterly statement cycle if the balance in the account falls below $100.00 any day of the cycle. Maintenance fee will be WAIVED on accounts held in name of a MINOR.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue on the business day you deposit noncash items (for example, checks).

Transaction limitations:

Transfers from a Regular Savings account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per statement period with no transfers by check, draft, debit card, or similar order to third parties.

Fees:

A withdrawal fee of $1.00 will be charged for each withdrawal in excess of two per month.

MONEY MARKET DEPOSIT ACCOUNT

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $1,000.00 to open this account.

Minimum balance to avoid imposition of fees - A maintenance fee of $5.00 will be imposed each monthly statement cycle if the daily balance for the monthly statement cycle falls below $1,000.00.

Minimum balance to obtain the annual percentage yield disclosed - You must maintain a minimum balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield. The interest rate paid on the account will change to the current Regular Savings rate if the minimum daily balance falls below $1,000.00 in a month.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations:

Transfers from a Money Market Deposit account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per statement period with no more than three by check, draft, or similar order to third parties.

Fees:

A service charge of $10.00 per month will be assessed if you write four to ten checks in a month. If you write more than ten checks, the service charge will be $1.00 per check.

INVESTMENT ACCOUNT

Determination of rate - At our discretion, we may change the interest rate on your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Minimum balance to open the account - You must deposit $10,000.00 to open this account.

Minimum balance to avoid imposition of fees - A minimum fee of $10.00 will be imposed every statement cycle if the balance in the account falls below $10,000.00 any day of the cycle.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks).

Transaction limitations:

Transfers from an Investment account to another account or to third parties by preauthorized, automatic, telephone, or computer transfer are limited to six per statement period with no more than three by check, draft, or similar order to third parties.

Fees:

A check charge fee of $5.00 will be charged for each check in excess of three during a monthly statement cycle.

32-DAY CERTIFICATE OF DEPOSIT

Rate Information - See rate Chart. You will be paid this rate until first maturity.

Compounding frequency - Interest will not be compounded.

Crediting frequency - Interest will be credited to your account at maturity.

Minimum balance to open the account - You must deposit $2,500.00 to open this account.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue on the business day you deposit noncash items (for example, checks).

Transaction limitations:

You may not make any deposits into your account before maturity.

You cannot withdraw interest from your account before maturity.

Early withdrawal penalties (a penalty may be imposed for withdrawals before maturity) -

The penalty we may impose is the greater of:

7 days interest, on the amount withdrawn subject to penalty, if the withdrawal is made within the first six days after the deposit.
all interest on the amount withdrawn subject to penalty.

In certain circumstances such as the death or incompetence of an owner of this account, the law permits, or in some cases requires, the waiver of the early withdrawal penalty. See your plan disclosure if the account is part of an IRA or other tax qualified plan.

Automatically renewable time account - This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below, if any) or we receive written notice from you within the grace period mentioned below, if any. If you prevent renewal, interest will not accrue after final maturity.

Each renewal term will be the same as the original term, beginning on the maturity date. The interest rate will be the same we offer on new time deposits on the maturity date which have the same term, minimum balance (if any) and other features as the original time deposit.

You will have ten calendar days after maturity to withdraw the funds without a penalty.

CERTIFICATE OF DEPOSIT
(Terms: 3 Months to 5 Years)

Rate Information - See rate Chart. You will be paid this rate until first maturity.

Compounding frequency - Unless otherwise paid, interest will be compounded quarterly.

Crediting frequency - Interest will be credited to your account quarterly. Alternatively, you may choose to have interest paid to you by check or to another account monthly*, quarterly, semiannually, or annually rather than credited to this account.

* Monthly payment of interest is only available if your CD balance is $5,000.00 or more.

Minimum balance to open the account - You must deposit $500.00 (or $1,000.00 for 9 Month CDs) to open this account.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue on the business day you deposit noncash items (for example, checks).

Transaction limitations:

You may not make any deposits into your account before maturity.

You can only withdraw interest credited in the term before maturity of that term without penalty. You can withdraw interest any time during the term of crediting after it is credited to your account.

This interest withdrawal limitation does not apply if you have made arrangements to have interest paid to you or to another account in lieu of having it credited to this account.

Early withdrawal penalties (a penalty may be imposed for withdrawals before maturity) -

If your account has an original maturity of one year or less:
The fee we may impose will equal three months interest on the amount withdrawn subject to penalty.
If your account has an original maturity of more than one year:
The fee we may impose will equal six months interest on the amount withdrawn subject to penalty.

Withdrawal of interest prior to maturity - The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.

Automatically renewable time account - This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below, if any) or we receive written notice from you within the grace period mentioned below, if any. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, interest will not accrue after final maturity.

You will have ten calendar days after maturity to withdraw the funds without a penalty.

INDIVIDUAL RETIREMENT ACCOUNT
(Terms: 1 Year to 5 Years)

Rate Information - See rate Chart. You will be paid this rate until first maturity.

Compounding frequency - Interest will be compounded every quarter.

Crediting frequency - Interest will be credited to your account every quarter.

Minimum balance to open the account - You must deposit $500.00 to open this account.

Minimum balance to obtain the annual percentage yield disclosed - You must maintain a minimum balance of $500.00 in the account each day to obtain the disclosed annual percentage yield.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue on the business day you deposit noncash items (for example, checks).

Transaction limitations:

You may make unlimited deposits into your account, subject to IRS regulations.

There are no limitations on the frequency or timing of additional deposits, except that no additions can be made in the last seven days before maturity.

You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. All withdrawals from IRA accounts are subject to IRS regulations. IRS penalties may be imposed on withdrawals from this account, depending on the circumstances.

You can only withdraw interest credited in the term before maturity of that term, subject to penalty. You can withdraw interest any time during the term of crediting after it is credited to your account.

Early withdrawal penalties (a penalty may be imposed for withdrawals before maturity) -

If your account has an original maturity of one year:
The fee we may impose will equal three months interest on the amount withdrawn subject to penalty.
If your account has an original maturity of more than one year:
The fee we may impose will equal six months interest on the amount withdrawn subject to penalty.

Withdrawal of interest prior to maturity - The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.

Automatically renewable time account - This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below, if any) or we receive written notice from you within the grace period mentioned below, if any. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, interest will not accrue after final maturity.

You will have ten calendar days after maturity to withdraw the funds without a penalty.

IRA 18-MONTH SPECIAL INVESTMENT ACCOUNT

Rate Information - See rate Chart. Your interest rate and annual percentage yield may change. Frequency of rate changes - We may change the interest rate on your account every month. Determination of rate - The interest rate on your account will be equal to the 2 Year Treasury Note coupon rate at the most recent auction prior to the 1st of the month.

Compounding frequency - Interest will be compounded every quarter.

Crediting frequency - Interest will be credited to your account every quarter.

Minimum balance to open the account - You must deposit $250.00 to open this account.

Daily balance computation method - We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

Accrual of interest on noncash deposits - Interest begins to accrue on the business day you deposit noncash items (for example, checks).

Transaction limitations:

You may make unlimited deposits into your account, subject to IRS regulations. The minimum amount you can deposit is $50.00.

There are no limitations on the frequency or timing of additional deposits, except that no additions can be made in the last seven days before maturity.

Early withdrawal penalties (a penalty may be imposed for withdrawals before maturity) -: The fee we may impose will equal six months interest on the amount withdrawn subject to penalty.

For any time deposit which earns an interest rate that may vary from time to time during the term, the interest rate we will use to calculate this early withdrawal penalty will be the interest rate in effect at the time of the withdrawal.

Withdrawal of interest prior to maturity - The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings.

Automatically renewable time account - This account will automatically renew at maturity. You may prevent renewal if you withdraw the funds in the account at maturity (or within the grace period mentioned below, if any) or we receive written notice from you within the grace period mentioned below, if any. We can prevent renewal if we mail notice to you at least 30 calendar days before maturity. If either you or we prevent renewal, interest will not accrue after final maturity.

Each renewal term will be the same as the original term, beginning on the maturity date. Interest will be calculated on the same basis as during the original term.

You will have ten calendar days after maturity to withdraw the funds without a penalty.

COMMON FEATURES

The following fees may be assessed against your account and the following transaction limitations, if any, apply to your account.

Check printing - (fee depends on style of check ordered)

A checking or savings account is dormant if for 12 months (previous) there is no activity or other indication in writing from you of an interest in the account.

Dormant account fee - $3.00: This fee is charged each month.

Refer to our separate fee schedule for additional charges that may be assessed against your account.

We may require not less than 7 days' notice in writing before each withdrawal from an interest-bearing account other than a time deposit, or from any other savings account as defined by Regulation D. Withdrawals from a time account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. See your notice of penalty for early withdrawal.