FIRST STATE BANK
ONLINE BANKING PRIVACY POLICY

Respect of Right of Privacy

At First State Bank, we value each and every customer relationship. Customers such as you have entrusted us not only with your finances, but also with your personal information. We recognize and respect that our customers expect their financial information to be kept private. To protect your personal information we have set and maintained standards and procedures designed to prevent the misuse of such information for both normal banking operations and online use. Any online technology we use has been developed by and is supported by large online banking companies, which in turn provide advanced security technology to make online banking secure.

Collection, Retention and use of Information

At First State Bank we collect, retain and use information about our customers only where it is useful and allowed by law in our business, and to produce First State Bank products, services and other opportunities to our customers. We can ensure you that any information collected online is done so to protect access to your personal accounts and to assist you with your banking needs. Furthermore, any personal information that is collected online is stored by the bank for specific business purposes (to protect and administer to your personal accounts), to comply with state and federal regulations, and to help us better understand your banking needs. We do not obtain any personal information about you when you visit our web-site unless you choose to submit that information. Any information that is submitted is done so through an encrypted direct line to the bank.

Precise Account Information

First State Bank has established procedures so that our customer’s financial information is accurate, current, and complete in accordance with reasonable commercial standards. Should you ever believe that our records contain inaccurate or incomplete information about you, please notify us. We will investigate your concerns and correct any inaccuracies.

Information Reported to Consumer Reporting Agencies:

Under the Fair Credit Reporting Act you have the right to notify us if you believe we have reported inaccurate information about your account to any Consumer Reporting Agency. Such notices should be sent in writing and include your complete name, current address, social security number, telephone number, account number, type of account, specific item of dispute and the reason why you believe the information reported is in error. Send your notices to First State Bank, P.O. Box 5, Chico, TX 76431.

Limiting Employee Access to Information

First State Bank limits employee access to customer information to those with a business reason for knowing such information. First State Bank educates its employees so that they will understand the importance of confidentiality and customer privacy.

E-Mail Messages

First State Bank retains the right to keep any e-mail messages, addresses, and our response to allow us to handle or research any follow up questions that may arise. This information may also be retained to meet any legal or regulatory requirements.

Restrictions on Disclosing your Information to Outsiders

First State Bank does not reveal specific customer information to affiliates or unaffiliated third parties for their independent use unless:

• The information is provided to help complete a customer initiated transaction.
• The customer requests or authorizes that the information be revealed.
• The disclosure is required by law (e.g., subpoena, investigation of fraudulent activities, etc.)
• The disclosure is allowed by law (e.g., Fair Credit Reporting Act)
• The customer has been informed about the possibility of disclosure for marketing or similar purposes through a prior communication and is given the opportunity to decline (i.e., "opt out").

Maintaining Customer Privacy in Business Relationships with Third Parties

If the situation arises when customer information is shared with a third party, that third party must agree to adhere to privacy principles similar to those to which First State Bank adheres for keeping this information confidential. However, First State Bank can not and does not bear any responsibility for actions or policies of such third parties.

Linked Internet Sites

First State Bank strives to protect your privacy, however we cannot control information on other Internet sites, and thus cannot be responsible for the information practices linked to or from these sites. These sites may contain privacy provisions that differ from the provisions provided herein. Please check with those sites to determine their privacy policy.

Children Accessing Our Web Site

First State Bank does not knowingly market or solicit data from children. Our web site has been developed with the sole intention of informing customers of our products and services. We are confident that information provided on our web site would not be judged as questionable viewing for children.

Cookies on our Web Site

To provide better service and a more effective web site, we use "cookies" as part of our interaction with your browsers. A "cookie" is a small text file placed on your hard drive by our Web Page Server. A cookie cannot retrieve any other data from your hard drive, pass on computer viruses, or capture your e-mail address. Cookies are commonly used on Web Sites and do not harm your system. Cookies do not contain personally identifiable information. By configuring your preferences or options in your browser, you determine if and how a cookie will be accepted. We may use cookies to help evaluate our web site and for administrative purposes.

Disclosure of Privacy Policies to Customers

First State Bank is committed to ensuring the privacy of its customers’ personal information. Customers that are concerned about financial privacy or would like to inquire more about financial privacy should contact their local First State Bank representative.

These privacy principles apply only to individuals who obtain financial products or services primarily for personal, family, and household use. We reserve the right to change this policy at any time.

The First State Bank, Chico, Texas is chartered under the laws of the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Banking.  Any consumer wishing to file a complaint against the First State Bank, Chico, Texas should contact the Texas Department of Banking through one of the means indicated below:

In Person or U.S. Mail:  2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294.

Fax No: 512/475-1313 E-Mail:  Consumer.complaints@banking.state.tx.us Web-site:  www.banking.state.tx.us