First American Bank’s

CONSUMER DISCLOSURE CONCERNING YOUR PRIVACY RIGHTS

EFFECTIVE JULY 1, 2007

First American Bank and its affiliates, Sandhill Life Insurance Company and First American Investment Services, Inc., collect and maintain information about its customers in order to provide superior service to each customer. We understand the nature of the information provided us is highly personal and we respect our customers' desire to maintain the privacy of such information.

Our customers are protected by federal and state laws. First American Bank and its affiliates are committed to upholding both the spirit and the letter of those laws. Our commitment is described further in this Customer Privacy Statement.

Customer Identification Program

In accordance with the USA PATRIOT Act, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person that opens an account.  This includes all personal and commercial accounts, including loan and deposit accounts, as well as trust, brokerage, insurance and investment management accounts.

What this means to our customers

When you open an account, you will be asked for your name, address, social security or tax identification number, date of birth (if applicable) and other information that will allow First American Bank to identify you.  We may ask to see your driver’s license or other identifying documents.  We are required to follow this procedure each time an account is opened, even if you are a current customer of First American Bank.

1.       Information Collected

As a financial institution, we gather and maintain information about our customers in order to deliver our services to them in an accurate and timely fashion. We collect nonpublic personal information about you in order to conduct our business with you from the following sources:

a.  Information we receive from you on applications or other forms, such as name, address, or telephone number.

b.  Information about your transactions with us or others such as debit cards or electronic transactions in your deposit accounts, or payment histories.

c.   Information we may receive from a consumer reporting agency, such as your creditworthiness and credit history.

d.   Information we may receive from you over the internet such as your social security number or web address.

2.       Accuracy of Information

We are committed to maintaining complete and accurate information about our customers, and we employ reasonable measures to ensure the accuracy, timeliness, and thoroughness of this information. If you think any information we have about you or your account(s) may be incorrect, please notify us immediately. We will take prompt action to make the appropriate corrections and to notify others who may need to know.

3.       Sharing Customer Information

First American Bank will not share nonpublic personal and financial information of customers with unaffiliated third parties except when legally required or when legally permitted to serve customers' interests. Information we collect as described above will only be disclosed to third parties under the following circumstances:

a.  Where it is necessary to complete a transaction initiated by the customer.

b.  In order to report the existence and condition of an account to companies such as a reputable credit bureau.

c.   In order to comply with lawful government or court orders.

d.   If we have written permission of the account holder.

e.   Whenever we believe there are products or services of interest to you which we, or another financial institution in a joint marketing agreement with us, may be able to provide you.

4.       Employee Access

Some of the information gathered about you is used to assist us in maintaining security over your account. For example, we must be able to positively identify you and the products you use to prevent access by unauthorized persons.

An important part of our employee education program is the emphasis we place on customer confidentiality. Our employees are aware of their responsibilities with respect to customer information. Only employees who need customer information to perform their duties are authorized to access customer information.

5.       Protection Information

We appreciate the trust you place in us when you provide your personal and financial data. To continue earning that trust, First American Bank keeps that data in a secured environment that protects your account information from being accessed by third parties. We maintain and grant access to customer information only in accordance with our internal security standards. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information. Should you close your account(s) or become an inactive customer, we will continue to adhere to the privacy policies and practices described in this notice.

6.       Children's Online Information Privacy

We do not knowingly collect, maintain, or use personal information from our website about children under age 13. If a child who we know to be under age 13 sends personal information to us online, we will discard that information.

7.         Online Privacy

First American Bank is committed to protecting customers and visitors to our web site at www.FirstAmBank.com. Accordingly, our website uses a variety of advanced internet security technologies including encryption of information that is transmitted while accessing account information or submitting account applications by using Secured Sockets Layer technology.  We also use digital certificates to uniquely identify and substantiate First American Bank to your Browser.  Additionally, authentication is required when using online services to validate your identity using private personal information along with a password you have selected.

8.       Telephone conversations

For quality purposes, your telephone conversations with the bank may be recorded.