FDIC INSURANCE

EFFECTIVE OCTOBER 3, 2008, FDIC INSURANCE INCREASED FROM $100,000 TO $250,000 PER DEPOSITOR.

 THIS REMAINS IN EFFECT THROUGH DECEMBER 31, 2013.

EFFECTIVE OCTOBER 14, 2008, NON INTEREST-BEARING CHECKING, INCLUDING NOW AND IOLTA ACCOUNTS, ARE INSURED IN FULL BY THE FDIC.

THIS REMAINS IN EFFECT THROUGH JUNE 30th, 2010.

LUZERNE BANK PARTICIPATES IN THE FDIC’S TRANSACTION ACCOUNT GUARANTEE PROGRAM AND HAS NOT OPTED OUT. 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.