First National Bank Disclosure Documents

Disclosure Documents Change in Terms Notices Terms and Conditions Electronic Fund Transfers

Funds Availability Substitute Checks

Change in Terms for First National Bank TABLE OF CONTENTS

CHANGE IN TERMS FOR FIRST NATIONAL BANK……………………………………………………………………………………………………………………………….……………………………………..2 CHANGE IN TERMS FOR FIRST STATE BANK, A DIVISION OF FIRST NATIONAL BANK………………………………………………………..……………………………………………………..10 TERMS AND CONDITIONS OF YOUR ACCOUNT ........................................................................................................................................................................ 1 5 Important Information About Procedures for Opening a New Account ............................................................................................................................................. 1 5 Agreement .......................................................................................................................................................................................................................................... 1 5 Liability ................................................................................................................................................................................................................................................ 1 5 Deposits............................................................................................................................................................................................................................................... 1 5 Withdrawals........................................................................................................................................................................................................................................ 1 5 Understanding and Avoiding Overdraft and Nonsufficient Funds (NSF) Fees..................................................................................................................................... 1 6 Uniform Single-Party or Multiple-Party Account Selection Form Notice ............................................................................................................................................ 1 7 Business, Organization and Association Accounts............................................................................................................................................................................... 1 7 Stop Payments..................................................................................................................................................................................................................................... 1 7 Telephone Transfers ............................................................................................................................................................................................................................ 1 7 Amendments and Termination ............................................................................................................................................................................................................................. 1 7 Notices ................................................................................................................................................................................................................................................ 1 8 Statements .......................................................................................................................................................................................................................................... 1 8 Account Transfer ................................................................................................................................................................................................................................. 1 8 Direct Deposits .................................................................................................................................................................................................................................... 1 8 TemporaryAccountAgreement........................................................................................................................................................................................................... .. 1 8 Setoff ................................................................................................................................................................................................................................................... 1 8 Restrictive Legends or Indorsements .................................................................................................................................................................................................. 1 8 Facsimile Signatures ............................................................................................................................................................................................................................ 1 8 Check Processing ................................................................................................................................................................................................................................. 1 8 Check Cashing...................................................................................................................................................................................................................................... 1 8 Indorsements ...................................................................................................................................................................................................................................... 1 8 Death or Incompetence....................................................................................................................................................................................................................... 1 9 Fiduciary Accounts............................................................................................................................................................................................................................... 1 9 Credit Verification ............................................................................................................................................................................................................................... 1 9 Legal Actions AffectingYour Account................................................................................................................................................................................................... 1 9 Account Security ................................................................................................................................................................................................................................. 1 9 Telephonic Instructions........................................................................................................................................................................................................................ 1 9 Monitoring and Recording Telephone Calls and Consent to Receive Communications ...................................................................................................................... 1 9 Claim of Loss........................................................................................................................................................................................................................................ 20 Early Withdrawal Penalties ................................................................................................................................................................................................................. 20 Address or Name Changes .................................................................................................................................................................................................................. 20 Resolving Account Disputes................................................................................................................................................................................................................. 20 Waiver of Notices ................................................................................................................................................................................................................................ 20 ACH and Wire Transfers ...................................................................................................................................................................................................................... 20 Truncation, Substitute Checks, and Other Check Images.................................................................................................................................................................... 20 Remotely Created Checks ................................................................................................................................................................................................................... 20 Unlawful Internet Gambling Notice .................................................................................................................................................................................................... 20 ELECTRONIC FUND TRANSFERS YOUR RIGHTS AND RESPONSIBILITIES.................................................................................................................................... . 2 1 FUNDS AVAILABILITY POLICY.................................................................................................................................................................................................... 2 4 SUBSTITUTE CHECKS AND YOUR RIGHTS............................................................................................................................................................................ . ..... 2 5

CHANGE IN TERMS NOTICE IMPORTANT NOTICE ABOUT ACCOUNT CHANGES EFFECTIVE FEBRUARY 16, 2021 AND MARCH 1, 2021

First National Bank’s new account offerings are outlined in the Welcome Packet Account Grids on pages 9-11. Your current account may be changing names and account features. Rest assured that you have a choice in accounts. If you prefer to be moved to a different account, you may choose an account that better suits your needs. We will be happy to put you into the account of your choice. This notice serves to highlight those changes, both non-adverse and adverse, to checking, savings, and money market accounts. Non-adverse changes are effective as of February 16 and adverse changes are effective as of March 1.

QUESTIONS? Contact a New Accounts Representative at any branch location or call Customer Service at 800-460-6678.

ALL ACCOUNTS

Accounts Affected:

Date Effective (2021): February 16

Term:

New Term/Clarification:

Debit Card Limits

See page 6 of the enclosed color brochure for information about increases in debit card limits See page 8 of the enclosed color brochure for information about changes in our Fee Schedule. Smallest items first to largest items. Additional detail provided in the enclosed Terms and Conditions disclosure.

February 16

Fee Schedule

February 16

Clarification of Our Payment Order of Items

March 1

Terms and Conditions Funds Availability

See enclosed disclosure with changes highlighted in grey.

March 1

See enclosed disclosure with changes highlighted in grey.

March 1

Substitute Check Disclosure Paper Statement Fee

See enclosed disclosure with changes highlighted in grey.

All Accounts

March 1

While most of our accounts will now be subject to a paper statement fee, customers who currently receive paper statements without a fee will continue to receive paper statements without being charged the paper statement fee. You may become subject to the fee if you change your account type or open a new account or if you currently receive an electronic statement (E-statement) and switch to receiving a paper statement. Accounts now subject to the paper statement fee are noted in the account grids in the enclosed color Welcome Packet.

2

ALL ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021):

Term:

New Term/Clarification:

All Savings Accounts

March 1

Statement Frequency

Quarterly

Monthly

February 16

Accrual of Interest on

Interest began to accrue no later than the day we received credit for the deposit.

Interest begins to accrue on the business day you deposit noncash items (for example, checks).

All Interest Bearing Accounts

Noncash Deposits

CONSUMER ACCOUNTS

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Recurring OD Charge Electronic Fund Transfers Account Name Account Name Account Name Minimum Balance to Open Account Name Interest Bearing Status

$30.00

None

All Consumer Accounts

March 1

See enclosed disclosure with changes highlighted in grey.

February 16

Free Checking

E-Checking

Free Checking

February 16 February 16

Basic Checking Student Checking

E-Checking E-Checking

Basic Checking

Student Checking

February

$0

$100

February 16 February 16

Premier Checking I

E-Checking

The account was styled as an interest bearing account, but the account was currently paying 0.00% APY.

Non-Interest Bearing

Premier Checking I

February 16

Account Name

Premier Checking II

E-Checking

February 16

Interest Bearing Status

The account was styled as an interest bearing account, but the account was currently paying 0.00% APY.

Non-Interest Bearing

Premier Checking II

Employee Checking

February 16

Account Name

Employee Checking

E-Checking

February 16

Interest Rate Structure

Tiered Rate Structure: • Balances Through $1,499.99 • Balances Over $1,499.99

No tiers. Interest paid on all balances.

Interest Checking

3

CONSUMER ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Minimum Balance Required to Obtain the APY Disclosed Interest Rate Structure Minimum Balance Required to Obtain the APY Disclosed

$1,500 collected balance each day

None

Interest Checking (continued)

February 16

Tiered Rate Structure: • Balances Through $99.99 • Balances Over $99.99 Minimum balance of $100 each day

No tiers. Interest paid on all balances.

February 16

None

Regular Savings

February 16

Transfer/ Withdrawal Transaction Limitations

Limited to two (2) per month Limited to six(6) per month (in- person and ATM transactions and automatic FNB loan transfers unlimited)

March 1

Excessive Transaction Fee

$1/each

$4/each

March 1

Statement Frequency

Quarterly

Monthly

February 16 February 16

Account Name Interest Rate Structure Minimum Balance Required to Obtain the APY Disclosed

Student Savings

Regular Savings

Tiered Rate Structure: • Balances Through $99.99 • Balances Over $99.99 Minimum balance of $100 each day

No tiers. Interest paid on all balances.

February 16

None

Student Savings

February 16

Transfer/ Withdrawal Transaction Limitations

Limited to two (2) per month Limited to six(6) per month (in- person and ATM transactions and automatic FNB loan transfers unlimited)

March 1

Excessive Transaction Fee

$1/each

$4/each

March 1

Statement Frequency

Quarterly

Monthly

4

CONSUMER ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Interest Rate Structure

Tiered Rate Structure: • Balances Through $2,499.99 • Balances Over $2,499.99 Minimum collected balance of $2,500 each day

No tiers. Interest paid on all balances.

February 16

Minimum Balance Required to Obtain the APY Disclosed Minimum Balance Required to Earn Interest: Minimum Balance to Open

None

Money Market

February 16

If your balance fell below $2,500, no interest was earned.

None

February 16

$2,500

$10,000

February 16

Interest Rate Structure

Tiered Rate Structure: • Balances through $9,999.99

Tiered Rate Structure: • Balances under $25,000.00 • $25,000.00 - $49,999.99 • $50,000.00 - $99,999.99 • $100,000.00 - $449,999.99 • Balances over $449,999.99

• $10,000.00 - $24,999.99 • $25,000.00 - $49,999.99 • $50,000.00 - $74,999.99 • $75,000.00 - $99,999.99 • $100,000.00 - $249,999.99 • Balances over $250,000.00 Minimum collected balance of $2,500 each day

February 16

Minimum Balance Required to Obtain the APY Disclosed Minimum Balance Required to Earn Interest: Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee

None

Money Market Plus

February 16

If your balance fell below $2,500, no interest was earned.

None

March 1

$12

$15

March 1

Minimum balance of $2,500 each day

Minimum balance of $10,000 each day

February 16

Account Name

Money Market Max

Money Market Plus

February 16

Minimum Balance to Open Monthly Service Fee

$25,000

$10,000

Money Market Max

February 16

$25

$15

5

CONSUMER ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Minimum Balance to Avoid Monthly Service Fee

Minimum balance of $25,000 each day

Minimum balance of $10,000 each day

March 1

Interest Rate Structure

Tiered Rate Structure: • Balances through $9,999.99

Tiered Rate Structure: • Balances under $25,000.00 • $25,000.00 - $49,999.99 • $50,000.00 - $99,999.99 • $100,000.00 - $449,999.99 • Balances over $449,999.99

• $10,000.00 - $24,999.99 • $25,000.00 - $49,999.99 • $50,000.00 - $74,999.99 • $75,000.00 - $99,999.99 • $100,000.00 - $249,999.99 • Balances over $250,000.00 Minimum collected balance of $2,500 each day

Money Market Max (continued)

March 1

Minimum Balance Required to Obtain the APY Disclosed

None

BUSINESS ACCOUNTS

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Account Name

Business Checking

Regular Business Checking

February 16

Minimum Balance to Open

$100

$200

February 16

Transaction Limitations

Subject to Transaction Limitations and Fees

None

Business Checking

March 1

Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee Minimum Balance to Open Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee Account Name

$3

$7

March 1

None

Minimum balance of $500 each day

February 16

Business Checking Plus

Regular Business Checking

February 16

$100

$200

Business Checking Plus

February 16

$15

$7

February 16

Minimum balance of $5,000 each day

Minimum balance of $500 each day

6

BUSINESS ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Transaction Limitations

Subject to Transaction Limitations and Fees

None

Business Checking Plus (continued)

February 16

Account Name

Small Business Checking

Regular Business Checking

February 16

Minimum Balance to Open

$100

$200

February 16

Transaction Limitations

Subject to Transaction Limitations and Fees

None

Small Business Checking

March 1

Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee

$0

$7

March 1

None

Minimum balance of $500 each day

February 16

Account Name

Business Interest Checking

Interest Business Checking

February 16

Transaction Limitations Additional Terms

Subject to Transaction Limitations Only available to Sole Proprietors and Non-Profit Organizations Tiered Rate Structure: • Balances Through $99.99 • Balances Over $99.99

None

Business Interest Checking

February 16

Limitation Removed

February 16

Interest Rate Structure

No tiers. Interest paid on all balances.

February 16

Transfer/ Withdrawal Transaction Limitations

Limited to two (2) per month Limited to six(6) per month (in-person and ATM transactions and automatic FNB loan transfers unlimited)

Regular Business Savings

March 1

Excessive Transaction Fee

$1/each

$4/each

March 1

Statement Frequency

Quarterly

Monthly

February 16

Minimum Balance to Open Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee

$1,500

$1,750

February 16

$7

$0

IOLTA Account

February 16

Minimum balance of $1,500 each day

None

7

BUSINESS ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Interest Rate Structure

Tiered Rate Structure: • Balances Through $1,499.99 • Balances Over $1,499.99 Minimum balance of $1,500 each day

No tiers. Interest paid on all balances.

February 16

Minimum Balance Required to Obtain the APY Disclosed

None

IOLTA Account (continued)

February 16

Transaction Limitations Additional Terms

Subject to Transaction Limitations and Fees

None

March 1

Not specified

IOLTA trust account, then the interest (less applicable fees and service charges) will be sent to the TEXAS ACCESS TO JUSTICE FOUNDATION.

February 16

Interest Rate Structure

Tiered Rate Structure: • Balances Through $2,499.99 • Balances Over $2,499.99 Minimum collected balance of $2,500 each day

No tiers. Interest paid on all balances.

February 16

Minimum Balance Required to Obtain the APY Disclosed Minimum Balance Required to Earn Interest Account Name

None

Business Money Market

February 16

If your balance fell below $2,500, no interest was earned.

None

February 16

Premium Business Money Market

Business Money Market Plus

March 1

Interest Rate Structure

Tiered Rate Structure: • Balances through $9,999.99

Tiered Rate Structure: • Balances under $25,000.00 • $25,000.00 - $49,999.99 • $50,000.00 - $99,999.99 • $100,000.00 - $449,999.99 • Balances over $449,999.99

Premium Business Money Market

• $10,000.00 - $24,999.99 • $25,000.00 - $49,999.99 • $50,000.00 - $74,999.99 • $75,000.00 - $99,999.99 • $100,000.00 - $249,999.99 • Balances over $250,000.00 Commercial Money Max

February 16

Account Name

Business Money Market Plus

Commercial Money Max

February 16

Minimum Balance to Open

$25,000

$10,000

8

BUSINESS ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021): February 16

Term:

Prior Term:

New Term/Clarification:

Monthly Service Fee

$25

$15

February 16

Minimum Balance to Avoid Monthly Service Fee

Minimum balance of $25,000 each day

Minimum balance of $10,000 each day

Commercial Money Max (continued)

March 1

Interest Rate Structure

Tiered Rate Structure: • Balances through $9,999.99

Tiered Rate Structure: • Balances under $25,000.00 • $25,000.00 - $49,999.99 • $50,000.00 - $99,999.99 • $100,000.00 - $449,999.99 • Balances over $449,999.99

• $10,000.00 - $24,999.99 • $25,000.00 - $49,999.99 • $50,000.00 - $74,999.99 • $75,000.00 - $99,999.99 • $100,000.00 - $249,999.99 • Balances over $250,000.00

9

CHANGE IN TERMS NOTICE IMPORTANT NOTICE ABOUT ACCOUNT CHANGES EFFECTIVE FEBRUARY 16, 2021 AND MARCH 1, 2021

First National Bank’s new account offerings are outlined in the Welcome Packet Account Grids on pages 9-11. Your current account may be changing names and account features. Rest assured that you have a choice in accounts. If you prefer to be moved to a different account, you may choose an account that better suits your needs. We will be happy to put you into the account of your choice. This notice serves to highlight those changes, both non-adverse and adverse, to checking, savings, and money market accounts. Non-adverse changes are effective as of February 16 and adverse changes are effective as of March 1. QUESTIONS? Contact a New Accounts Representative at any branch location or call 940.683.6300.

ALL ACCOUNTS

Accounts Affected:

Date Effective (2021):

Term:

New Term/Clarification:

February 16

Debit Card Limits

See page 6 of the enclosed color Welcome Packet for information about increases in debit card limits

March 1

Fee Schedule

See page 8 of the enclosed color brochure for information about changes in our Fee Schedule. See enclosed disclosure with changes highlighted in grey.

March 1

Terms and Conditions Funds Availability

March 1

See enclosed disclosure with changes highlighted in grey.

March 1

Substitute Check Disclosure Paper Statement Fee

See enclosed disclosure with changes highlighted in grey.

All Accounts

March 1

While most of our accounts will now be subject to a paper statement fee, customers who currently receive paper statements without a fee will continue to receive paper statements without being charged the paper statement fee. You may become subject to the fee if you change your account type or open a new account or if you currently receive an electronic statement (E-Statement) and switch to receiving a paper statement. Accounts now subject to the paper statement fee are noted in the account grids in the enclosed color Welcome Packet.

10

CONSUMER ACCOUNTS

Accounts Affected:

Date Effective (2021):

Term:

Prior Term:

New Term/Clarification:

All Consumer Accounts

March 1

Electronic Fund Transfers Account Name

See enclosed disclosure with changes highlighted in grey.

February 16

Freedom Checking

E-Checking

February 16

Minimum Balance to Open

$1

$100

March 1

ATM Fee Refunds

Currently FSB will refund up to $30 per statement cycle for ATM charges when the customer turns in original ATM withdrawal receipts within 30 days of the charge.

Effective March 1, 2021, the account will no longer be eligible for ATM fee refunds.

Freedom Checking

February 16 February 16

Account Name Minimum Balance to Open Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee

Regular Checking

E-Checking

$200

$100

February 16

$7

None

February 16

Minimum balance of $500 per day

None

Regular Checking

March 1

ATM Fee Refunds

Currently FSB will refund up to $30 per statement cycle for ATM charges when the customer turns in original ATM withdrawal receipts within 30 days of the charge.

Effective March 1, 2021, the account will no longer be eligible for ATM fee refunds.

February 16 February 16

Account Name Minimum Balance to Open

First Account

E-Checking

$0

$200

First Account

March 1

Additional Terms

Accountholders receive free bank stock checks.

Effective March 1, 2021, accountholders will no longer receive free bank stock checks.

February 16

Minimum Balance to Open Minimum Balance to Obtain the APY Disclosed

$1,000

$1,500

February 16

Minimum balance of $1,000 each day

None

Interest Checking

11

CONSUMER ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021):

Term:

Prior Term:

New Term/Clarification:

March 1

Minimum Balance to Avoid Monthly Service Fee

$1,000

$1,500

Interest Checking (continued)

February 16

Account Name

Savings Consumer

Regular Savings

Savings Consumer

March 1

Monthly Service Fee Account Name Minimum Balance to Open Minimum Balance to Obtain the APY Disclosed Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee Excessive Transaction Fee Account Name

$3.33

$5.00

February 16

Money Market Consumer

Money Market

February 16

$1,500

$2,500

February 16

Minimum balance of $1,500 each day

None

Money Market Consumer

March 1

$10

$12

March 1

Minimum balance of $1,500 each day

Minimum balance of $2,500 each day

March 1

$5

$10

February 16

First Capital

Money Market Plus

March 1

Interest Rate Structure

Tiered Rate Structure: • Balances under $10,000.00 • $10,000.00 - $24,999.99 • $25,000.00 - $49,999.99 • $50,000.00 - $249,999.99 • $250,000.00 - $899,999.99 • $900,000.00 - $999,999.99 • $1,000,000.00 - $1,999,999.99 • Balances $2million and over

Tiered Rate Structure: • Balances under $25,000.00 • $25,000.00 - $49,999.99 • $50,000.00 - $99,999.99 • $100,000.00 - $449,999.99 • Balances over $449,999.99

First Capital

March 1

Minimum Balance to Obtain the APY Disclosed

Minimum balance of $10,000 each day

None

1 2

CONSUMER ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021):

Term:

Prior Term:

New Term/Clarification:

March 1

Minimum Balance Required to Earn Interest Excessive Transaction Fee

If balance drops below $10,000 on any day, no interest will be paid for that statement cycle

None

First Capital (continued)

March 1

$5

$10

BUSINESS ACCOUNTS

Accounts Affected:

Date Effective (2021):

Term:

Prior Term:

New Term/Clarification:

Business Regular Checking

February 16

Account Name

Business Regular Checking

Regular Business Checking

February 16

Account Name

First Account Business

Regular Business Checking

February 16

Minimum Balance to Open Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee

$0

$200

March 1

$0

$7

First Account Business

March 1

None

Minimum balance of $500 each day

March 1

Additional Terms

Accountholders receive free bank stock checks.

Effective March 1, 2021, accountholders will no longer receive free bank stock checks.

February 16

Account Name

Business Interest Checking

Interest Business Checking

February 16

Minimum Balance to Open Minimum Balance to Avoid Monthly Service Fee Minimum Balance Required to Obtain the APY Disclosed Account Name Monthly Service Fee

$1,750

$1,500

February 16

Minimum balance of $1,750 each day

Minimum balance of $1,500 each day

Business Interest Checking

February 16

Minimum balance of $1,000 each day

none

February 16

Business Savings

Regular Business Savings

March 1

$3.33

$5.00

Business Savings

1 3

BUSINESS ACCOUNTS (continued)

Accounts Affected:

Date Effective (2021):

Term:

Prior Term:

New Term/Clarification:

March 1

Interest Rate Type Determination of Rate Frequency of Rate Change Minimum Balance to Open Monthly Service Fee Minimum Balance to Avoid Monthly Service Fee Minimum Balance to Obtain the APY Disclosed Excessive Transaction Fee

Fixed

Variable

March 1

Fixed

Your interest rate and APY may change We may change the interest rate on your account daily, without notice

IOLTA Account

March 1

30 days advance notice of rate change

March 1

$1,500

$2,500

March 1

$10

$12

March 1

Minimum balance of $1,500 each day

Minimum balance of $2,500 each day

Business Money Market

March 1

Minimum balance of $1,500 each day

None

March 1

$5

$10

February 16

Account Name

Business First Capital

Business Money Market Plus

March 1

Interest Rate Structure

Tiered Rate Structure: • Balances under $10,000.00 • $10,000.00 - $24,999.99 • $25,000.00 - $49,999.99 • $50,000.00 - $249,999.99 • $250,000.00 - $899,999.99 • $900,000.00 - $999,999.99 • $1,000,000.00 - $1,999,999.99 • Balances $2million and over

Tiered Rate Structure: • Balances under $25,000.00 • $25,000.00 - $49,999.99 • $50,000.00 - $99,999.99 • $100,000.00 - $449,999.99 • Balances over $449,999.99

Business First Capital

March 1

Minimum Balance to Obtain the APY Disclosed Excessive Transaction Fee

Minimum balance of $10,000 each day

None

March 1

$5

$10

1 4

TERMS AND CONDITIONS OF YOUR ACCOUNT

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT - To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. AGREEMENT - This document, along with any other documents we give you pertaining to your account(s), is a contract that establishes rules which control your account(s) with us. Please read this carefully and retain it for future reference. If you sign the signature card or open or continue to use the account, you agree to these rules. You will receive a separate schedule of rates, qualifying balances, and fees if they are not included in this document. If you have any questions, please call us. This agreement is subject to applicable federal laws, the laws of the state of Texas and other applicable rules such as the operating letters of the Federal Reserve Banks and payment processing system rules (except to the extent that this agreement can and does vary such rules or laws). The body of state and federal law that governs our relationship with you, however, is too large and complex to be reproduced here. The purpose of this document is to: (1) summarize some laws that apply to common transactions; (2) establish rules to cover transactions or events which the law does not regulate; If any provision of this document is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. We may permit some variations from our standard agreement, but we must agree to any variation in writing either on the signature card for your account or in some other document. Nothing in this document is intended to vary our duty to act in good faith and with ordinary care when required by law. As used in this document the words “we,” “our,” and “us” mean the financial institution and the words “you” and “your” mean the account holder(s) and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. However, this agreement does not intend, and the terms “you” and “your” should not be interpreted, to expand an individual’s responsibility for an organization’s liability. If this account is owned by a corporation, partnership or other organization, individual liability is determined by the laws generally applicable to that type of organization. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular. “Party” means a person who, by the terms of an account, has a present right, subject to request, to payment from the account other than as a beneficiary or agent. LIABILITY - You agree, for yourself (and the person or entity you represent if you sign as a representative of another) to the terms of this account and the schedule of charges. You authorize us to deduct these charges, without notice to you, directly from the account balance as accrued. You will pay any additional reasonable charges for services you request which are not covered by this agreement. Each of you also agrees to be jointly and severally (individually) liable for any account shortage resulting from charges or overdrafts, whether caused by you or another with access to this account. This liability is due immediately, and we can deduct any amounts deposited into the account and apply those amounts to the shortage. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the item or benefited from the charge or overdraft. You will be liable for our costs as well as for our reasonable attorneys’ fees, to the extent permitted by law, whether incurred as a result of collection or in any other dispute involving your account. This includes, but is not limited to, disputes between you and another joint owner; you and an authorized signer or similar party; or a third party claiming an interest in your account. This also includes any action that you or a third party takes regarding the account that causes us, in good faith, to seek the advice of an attorney, whether or not we become involved in the dispute. All costs and attorneys’ fees can be deducted from your account when they are incurred, without notice to you. DEPOSITS - We will give only provisional credit until collection is final for any items, other than cash, we accept for deposit (including items drawn “on us”). Before settlement of any item becomes final, we act only as your agent, regardless of the form of indorsement or lack of indorsement on the item and even though we provide you provisional credit for the item. We may reverse any provisional credit for items that are lost, stolen, or returned. Unless prohibited by law, we also reserve the right to charge back to your account the amount of any item deposited to your account or cashed for you which was initially paid by the payor bank and which is later returned to us due to an allegedly forged, unauthorized or missing indorsement, claim of alteration, encoding error, counterfeit cashier’s check or other problem which in our judgment justifies reversal of credit. You authorize us to attempt to collect previously returned items without giving you notice, and in attempting to collect we may permit the payor bank to hold an item beyond the midnight deadline. Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars. We are not responsible for transactions by mail or outside depository until we actually record them. We will treat and record all transactions received after our “daily cutoff time” on a business day we are open, or received on a day we are not open for business, as if initiated on the next business day that we are open. At our option, we may take an item for collection rather than for deposit. If we accept a third-party check or draft for deposit, we may require any third-party indorsers to verify or guarantee their indorsements, or indorse in our presence. WITHDRAWALS - Generally - Unless clearly indicated otherwise on the account records, any of you, acting alone, who signs to open the account or has authority to make withdrawals may withdraw or transfer all or any part of the account balance at any time. Each of you (until we receive written notice to the contrary) authorizes each other person who signs or has authority to make withdrawals to indorse any item payable to you or your order for deposit to this account or any other transaction with us. Postdated checks - A postdated check is one which bears a date later than the date on which the check is written. We may properly pay and charge your account for a postdated check even though payment was made before the date of the check, unless we have received written notice of the postdating in time to have a reasonable opportunity to act. Because we process checks mechanically, your notice will not be effective and we will not be liable for failing to honor your notice unless it precisely identifies the number, date, amount and payee of the item. Checks and withdrawal rules - If you do not purchase your check blanks from us, you must be certain that we approve the check blanks you purchase. We may refuse any withdrawal or transfer request which you attempt on forms not approved by us or by any method we do not specifically permit. We may refuse any withdrawal or transfer request which is greater in number than the frequency permitted by our policy, or which is for an amount greater or less than any withdrawal limitations. We will use the date the transaction is completed by us (as opposed to the date you initiate it) to apply any frequency limitations. In addition, we may place limitations on the account until your identity is verified. Even if we honor a nonconforming request, we are not required to do so later. If you violate the stated transaction limitations (if any), in our discretion we may close your account or reclassify your account as another type of account. If we reclassify your account, your account will be subject to the fees and earnings rules of the new account classification. If we are presented with an item drawn against your account that would be a “substitute check,” as defined by law, but for an error or defect in the item introduced in the substitute check creation process, you agree that we may pay such item. (3) establish rules for certain transactions or events which the law regulates but permits variation by agreement; and (4) give you disclosures of some of our policies to which you may be entitled or in which you may be interested.

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Cash withdrawals - We recommend you take care when making large cash withdrawals because carrying large amounts of cash may pose a danger to your personal safety. As an alternative to making a large cash withdrawal, you may want to consider a cashier’s check or similar instrument. You assume full responsibility of any loss in the event the cash you withdraw is lost, stolen, or destroyed. You agree to hold us harmless from any loss you incur as a result of your decision to withdraw funds in the form of cash. Multiple signatures, electronic check conversion, and similar transactions - An electronic check conversion transaction is a transaction where a check or similar item is converted into an electronic fund transfer as defined in the Electronic Fund Transfers regulation. In these types of transactions the check or similar item is either removed from circulation (truncated) or given back to you. As a result, we have no opportunity to review the signatures or otherwise examine the original check or item. You agree that, as to these or any items as to which we have no opportunity to examine the signatures, you waive any requirement of multiple signatures. Notice of withdrawal - We reserve the right to require not less than 7 days’ notice in writing before each withdrawal from an interest-bearing account, other than a time deposit or demand deposit, or from any other savings deposit as defined by Regulation D. (The law requires us to reserve this right, but it is not our general policy to use it.) Withdrawals from a time account prior to maturity or prior to any notice period may be restricted and may be subject to penalty. See your notice of penalty for early withdrawal. UNDERSTANDING AND AVOIDING OVERDRAFT AND NONSUFFICIENT FUNDS (NSF) FEES - Generally - The information in this section is being provided to help you understand what happens if your account is overdrawn. Understanding the concepts of overdrafts and nonsufficient funds (NSF) is important and can help you avoid being assessed fees or charges. This section also provides contractual terms relating to overdrafts and NSF transactions. An overdrawn account will typically result in you being charged an overdraft fee or an NSF fee. Generally, an overdraft occurs when there is not enough money in your account to pay for a transaction, but we pay (or cover) the transaction anyway. An NSF transaction is slightly different. In an NSF transaction, we do not cover the transaction. Instead, the transaction is rejected and the item or requested payment is returned. In either situation, we can charge you a fee. Determining your available balance - We use the “available balance” method to determine whether your account is overdrawn, that is, whether there is enough money in your account to pay for a transaction. Importantly, your “available” balance may not be the same as your account’s “actual” balance. This means an overdraft or an NSF transaction could occur regardless of your account’s actual balance. Your account’s actual balance (sometimes called the ledger balance) only includes transactions that have settled up to that point in time, that is, transactions (deposits and payments) that have posted to your account. The actual balance does not include outstanding transactions (such as checks that have not yet cleared and electronic transactions that have been authorized but which are still pending). The balance on your periodic statement is the ledger balance for your account as of the statement date. As the name implies, your available balance is calculated based on the money “available” in your account to make payments. In other words, the available balance takes transactions that have been authorized, but not yet settled, and subtracts them from the actual balance. In addition, when calculating your available balance, any “holds” placed on deposits that have not yet cleared are also subtracted from the actual balance. For more information on how holds placed on funds in your account can impact your available balance, read the subsection titled “A temporary debit authorization hold affects your account balance.” Overdrafts - You understand that we may, at our discretion, honor withdrawal requests that overdraw your account. However, the fact that we may honor withdrawal requests that overdraw the account balance does not obligate us to do so later. So you can NOT rely on us to pay overdrafts on your account regardless of how frequently or under what circumstances we have paid overdrafts on your account in the past. We can change our practice of paying, or not paying, discretionary overdrafts on your account without notice to you. You can ask us if we have other account services that might be available to you where we commit to paying overdrafts under certain circumstances, such as an overdraft protection line-of-credit or a plan to sweep funds from another account you have with us. You agree that we may charge fees for overdrafts. For consumer accounts, we will not charge fees for overdrafts caused by ATM withdrawals or one-time debit card transactions if you have not opted-in to that service. We may use subsequent deposits, including direct deposits of social security or other government benefits, to cover such overdrafts and overdraft fees. Nonsufficient funds (NSF) fees - If an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money available in your account, and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money available in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented. Payment types - Some, but not necessarily all, of the ways you can access the funds in your account include debit card transactions, automated clearing house (ACH) transactions, and check transactions. All these payment types can use different processing systems and some may take more or less time to post. This information is important for a number of reasons. For example, keeping track of the checks you write and the timing of the preauthorized payments you set up will help you to know what other transactions might still post against your account. For information about how and when we process these different payment types, see the “Payment order of items” subsection below. Balance information - Keeping track of your balance is important. You can review your balance in a number of ways including reviewing your periodic statement, reviewing your balance online, accessing your account information by phone, or coming into one of our branches. Funds availability - Knowing when funds you deposit will be made available for withdrawal is another important concept that can help you avoid being assessed fees or charges. Please see our funds availability disclosure for information on when different types of deposits will be made available for withdrawal. For those accounts to which our funds availability policy disclosure does not apply, you can ask us when you make a deposit when those funds will be available for withdrawal. An item may be returned after the funds from the deposit of that item are made available for withdrawal. In that case, we will reverse the credit of the item. We may determine the amount of available funds in your account for the purpose of deciding whether to return an item for insufficient funds at any time between the times we receive the item and when we return the item or send a notice in lieu of return. We need only make one determination, but if we choose to make a subsequent determination, the account balance at the subsequent time will determine whether there are insufficient available funds. A temporary debit authorization hold affects your account balance - On debit card purchases, merchants may request a temporary hold on your account for a specified sum of money when the merchant does not know the exact amount of the purchase at the time the card is authorized. The amount of the temporary hold may be more than the actual amount of your purchase. Some common transactions where this occurs involve purchases of gasoline, hotel rooms, or meals at restaurants. When this happens, our processing system cannot determine that the amount of the hold exceeds the actual amount of your purchase. This temporary hold, and the amount charged to your account, will eventually be adjusted to the actual amount of your purchase, but it could be three calendar days, or even longer in some cases, before the adjustment is made. Until the adjustment is made, the amount of funds in your account available for other transactions will be reduced by the amount of the temporary hold. If another transaction is presented for payment in an amount greater than the funds left after the deduction of the temporary hold amount, you will be charged an NSF or overdraft fee according to our NSF or overdraft fee policy. You will be charged the fee even if you would have had sufficient funds in your account if the amount of the hold had been equal to the amount of your purchase.

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