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S&P Downgrade and Safety of Bank Deposits

August 19, 2011

The stock market turmoil and Standard & Poor's downgrade of long-term U.S. debt may cause you to have questions or concerns about the banking industry's health and the safety of bank deposits.

Farm Bureau Bank wants to assure you as a bank customer that recent economic events are completely unrelated to FDIC insurance coverage.

• Customer deposits are protected. The FDIC is financially secure and has the resources it needs to protect customer deposits. It has sufficient cash on hand today to meet its needs for the foreseeable future.
• The banking industry is committed to ensuring the FDIC's continued strength. Banks fully fund the FDIC through premiums. In addition, the banking industry's capital -- $1.53 trillion -- stands behind the FDIC to assure it remains strong.

Farm Bureau Bank is one of the strongest and most secure banks in the nation. As a member of the Farm Bureau family, the Bank has always focused on serving you, the member, in a safe and sound manner. Members will be pleased to know that we've never invested in speculative mortgages and have never compromised our credit standards to grow…all of which contributes to the Bank's strength and security today.