FARMERS BANK & TRUST CO.
FINANCIAL PRIVACY PROCEDURES

This policy outlays Farmers Bank & Trust Co.’s procedures to safeguard customer information. The Board of Directors, who will take an active role in implementing the policy to all employees, will review this policy yearly.

DEFINITIONS:

Before we can fully understand this policy, the following definitions must be clear. “Us”,”Our” or “We” used below means Farmers Bank.

Consumer – An individual who obtains, or has obtained a financial product or service to be used primarily for personal, family or household purposes.

Customer – A consumer is a customer of a financial institution when they have a continuing relationship with the institution.

Examples: a purchase of a money order/ traveler’s check or use of a Farmer’s Bank ATM does not constitute a customer

Nonpublic Personal Information – information about you that is collected from you through applications, transactions (with us and third parties), or consumer reporting agencies. This does not include information that is available from public sources, such as telephone directories or government records.

Affiliate – is a company we own or control, a company that owns or controls us, or a company that is owned or controlled by the same company that owns or controls us. Ownership does not mean complete ownership, but means owning enough to have control.

Nonaffiliated Third Party – is a company that is not an affiliate of ours.

Opt-Out – option available to those who do not wish to have their information shared with affiliates or non-affiliates.

DISCLOSURE:

Every year in January (usually around the 25^th), Farmers Bank will mail a current disclosure to all customers. Any new customers will receive the disclosure when they open a deposit account, apply for a loan or inquire for account information. Currently Farmers Bank does not disclose any information to affiliates or non-affiliates but if the disclosure changes, notice must be given to all customers and the bank must wait 30 days to give customers reasonable time to opt-out.

Opt-out information is currently not provided to customers because no information is shared. Farmers Bank will provide each customer with a clear and conspicuous notice that accurately explains the consumer’s rights to opt-out and reasonable methods of communicating their opt-out choice.

BOARD APPROVED 7-23-01

INFORMATION THAT WE COLLECT: 

We collect nonpublic information about consumers from some or all of the following sources:

r           Information we receive from applications or other forms

r           Information we receive from transactions at Farmers Bank

r           Information about transactions with nonaffiliated third parties

r           Information from a consumer-reporting agency

INFORMATION THAT WE DISCLOSE

Farmers Bank does not disclose consumer nonpublic personal information to nonaffiliated third parties, except as permitted by law or with your consent. Examples are (but not limited to):

r           Process a transaction that a customer has initiated

r           Customer written consent or authorization

r           Someone acting with fiduciary responsibility

r           To protect and prevent against fraud

Again, this does not include all exceptions, but Farmers Bank will handle other exceptions on a management referral basis.

SAFEGUARDING INFORMATION:

Farmers Bank has security practices and procedures in place to prevent unauthorized use or access to customer nonpublic personal information. Internally, information is only available to properly trained employees requiring access to process or service transactions or customer requests. Our computer systems utilize password protection to prevent access by unauthorized personnel, and Farmers Bank employs other than physical, electronic and procedural safeguards to ensure the protection of information in accordance with state and federal privacy regulations.