Notice of Changes in Temporary FDIC Insurance Coverage for Noninterest-Bearing 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

FDIC Information

First Priority Bank is an FDIC Insured Bank. To be eligible as an FDIC insured bank, a financial institution must meet high standards for financial strength and stability. Furthermore, FDIC insured institutions are regularly audited to ensure that they continue to meet the requirements of the FDIC.

On July 21, 2010, FDIC deposit insurance permanently increased to $250,000 per depositor

Deposits with First Priority are insured up to $250,000 for basic accounts (such as savings, checking, money market, and CDs) and up to $250,000 for retirement accounts. You may be realizing even higher rates of coverage. For full details, please visit the FDIC web site at http://www.fdic.gov/deposit. The site also provides an FDIC insurance calculator (http://www.fdic.gov/edie) that can help you calculate your coverage level.

Notice to Customers With Transfer or Sweep Arrangements

Your noninterest-bearing transaction accounts in sweep arrangements with us have unlimited FDIC deposit insurance. This insurance is in addition to the FDIC's normal deposit insurance coverage of $250,000. However, if you have noninterest-bearing transaction accounts with a transfer or sweep arrangement to an interest-bearing transaction account or product, that transfer could decrease your FDIC deposit insurance coverage. The funds transferred to an interest-bearing account are not covered by the temporary unlimited FDIC deposit coverage. Funds transferred from a non-interest bearing transaction account may fall under limited FDIC coverage as defined by account ownership.