Transaction Account Guarantee Program

THE NATIONAL BANK OF MALVERN

Important Notice to our Depositors

The National Bank of Malvern is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2010, all non-interest bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules.

For purposes of the Transaction Account Guarantee Program, the FDIC is including in the definition of non-interest-bearing transaction accounts:

• Traditional demand deposit checking accounts that allow for an unlimited number of deposits and withdrawals at any time;
• Accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs) and functionally equivalent accounts; and
• Negotiable order of withdrawal accounts (NOW accounts) with interest rates no higher than 0.25 percent for which the insured depository institution at which the account is held has committed to maintain the interest rate at or below 0.25 percent.

Note: This definition does not encompass interest-bearing money market deposit accounts (MMDAs).

{If the other institution is participating in the Transaction Account Guarantee Program, then the payee of the official check would be fully covered. If the other institution is not a participating institution, then whether the payee is insured for the amount of the official check would be based on the FDIC's general deposit insurance rules. The institution that provides such official checks to its customers must disclose this information to those customers}