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.

State Bank & Trust Company is required to enforce a prohibition in a federal law, the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), against commercial customers’ receipt through their accounts of any deposit or credit of any kind derived from illegal internet gambling.  By continuing to maintain an account with the bank, you agree not to engage in illegal internet gambling, and to tell us if your account is ever used in connection with any form of internet gambling, even if  you believe it is legal.  If you do not notify us, we may deny further access to various payment methods, close your account or take another action which we believe to be necessary to comply with UIGEA.