On October 3, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2009.

State Bank of Herscher has chosen not to participate in the FDIC's Transaction Account Guarantee Program. Customers of State Bank of Herscher with noninterest-bearing transaction accounts will continue to be insured through December 31, 2009 for up to $250,000 under the FDIC's general deposit insurance rules.