Privacy Policy

At The First National Bank of Cambridge, NE, the basis of each customer relationship, many of which span generations, is trust. You have chosen to do business with The First National Bank, and we are obligated to honor that relationship with great care, beginning with information you have chosen to share with us. We believe that your privacy should not be compromised. At the same time, we want to offer you the array of financial products and services you need to accomplish your financial goals. We believe we can do both through the privacy policy outlined below.

At The First National Bank, hereinafter referred to as Bank, we believe the confidentiality and protection of customer information is one of our fundamental responsibilities. And while information is critical to providing quality service, we recognize that one of our most important assets is our customers’ trust. Thus, the safekeeping of customer information is a priority for the Bank.

Information about consumers is accumulated from a variety of sources. Some information is provided to the Bank directly by customers themselves. Other data is developed by the Bank as a function of providing a product or service to a customer. Still other information is obtained from outside sources. The Bank collects, uses, and retains information about individual customers only where the Bank reasonably believes it is useful (and allowed by law) to administer the organization’s business and to provide products, services and other opportunities to its customers. The Bank does not collect, use or retain information about its customers when it does not have a good reason for doing so. The Bank shall not ask customers to provide information that is not useful to the administration of a relationship or the provision of a particular product or service. Certain types of information about a customer are needed in order to provide the customer access to the appropriate products and services. Categories of nonpublic, personal information collected may include social security numbers, account balance and activity, credit reports, date of birth, credit application information, credit history, financial information (balance sheet), income tax returns, income statements and medical information. Customer information will be retained by the Bank as long as necessary to administer to the customer or as allowed or required by State and Federal laws. This means that we will use information to help identify and mitigate potential risks or loss to the Bank. We will use this information only in accordance with the principles set out in this Policy. We may disclose all the information that we collect, as described above on current and former customers.

The Bank will keep nonpublic customer information only as long as it is useful to the administration of a customer’s account or as required by law. When a customer terminates their relationship with the Bank nonpublic information will be kept for a reasonable period of time in the hope that the relationship will be revived, normally 3 years, after which such information may be destroyed if there is no outstanding balances.

The Bank will strive to make sure that customer information is kept current, accurate and complete. Should you ever believe that our records contain inaccurate or incomplete information about you, please notify us. We will investigate your concerns and correct any inaccuracies. Updated information received will be given to the appropriate department, and our records will be changed in a timely manner. If a customer believes their information is incomplete or inaccurate they may contact the Bank at 308-697-3335 or send correct information to P.O. Box 10, Cambridge, NE 69022 or stop in our main office at 707 Patterson, Cambridge, NE.

The basis for each customer relationship is trust. The Bank limits employee access to personally identifiable information to those employees who have a business reason for knowing such information. Computer account and loan information is accessible to only those individuals with security access to this information, the level of security access is determined by the bank management. Loan files are kept locked during non-business hours and only authorized lending staff shall have access to these files. The Bank will continually educate their employees so that they will understand the importance of confidentiality and customer privacy and take disciplinary measures to enforce employee privacy responsibilities. Breach of that trust is serious and as stated in Personnel Policy may be cause for dismissal. A security officer is designated by the Board of Directors and is responsible for ensuring that customer information is maintained in a secure environment. Employees who do not have a valid business reason shall not access nor are they permitted to access nonpublic, personal information. Privacy responsibility will be reviewed annually with employees and part of new employee training.

We safeguard information according to established security standards and procedures, and we continually assess new technology for protecting information. Our employees are trained to understand and comply with these information principles.

If customer information is shared with unaffiliated companies, The Bank will place strict limits on who receives the information about customers’ accounts or other personally identifiable data. The Bank may share information with such companies if they provide a product or service that may benefit our customers. If we share information with unaffiliated companies, we will carefully review the company and the product or service to make sure that it provides value to our customers. We will only share the minimum amount of information necessary for that company to offer its product or services. We may disclose nonpublic personal information about you to the following types of third parties:

• Financial service providers such as mortgage bankers, securities broker-dealers, and insurance agents;
• Non-financial companies, such as retailers and direct marketers: and
• Others, such as non-profit organizations.

We may also disclose nonpublic personal information about you to nonaffiliated third parties as permitted by law. This applies to both current and former customers.

The Bank may share any customer information, including nonpublic, personal information, with affiliates without providing customers the opportunity to prevent the disclosure, i.e. to opt-out. Affiliates include subsidiaries that The Bank controls or affiliates owned by the bank holding company.

If the Bank outsources activities related to the provision of the bank’s products or services or the general administration of the bank, it may share customer information with the contractor. This includes the sharing of information with a contractor that is marketing the bank’s products or services. In such instances the Bank will disclose to the customer that the information will be shared, and will enter into an agreement with the contractor that requires the contractor to maintain the confidentiality of the customer information.

A customer’s account number, Personal Identification Number (PIN), credit or check card number may not be shared with any nonaffiliated third party for telemarketing or mail marketing purposes, even if the product or service that is being marketed is a bank product or service.

The Bank will not share nonpublic, personal information about a customer with any third party that is not an affiliate unless the bank tells the customer that it might share such information and gives the customer the right to prevent the disclosure, i.e., opt-out. If the customer decides to opt-out they may do so by signing the form on the backside and delivering it to the Bank at 707 Patterson, Cambridge, NE or by mailing the form to The First National Bank, P.O. Box 10, Cambridge, NE 69022. Exceptions to the Opt-Out Rule are as follows:

* If the third parties are performing services or functions on behalf of the

Bank, including marketing the Bank’s own products or services or

products and services offered pursuant to a joint agreement between the

Bank and another financial institution --- but only if the Bank discloses that

arrangement and enters into an agreement with the third party to maintain

the confidentiality of the information.

* If it is necessary to “effect, administer, or enforce” a transaction requested

or authorized by the consumer.

* If the information is shared in connection with:

* servicing or processing a product or service requested or authorized

by the consumer;

* maintaining or servicing the consumer’s account with the Bank or

another entity as part of a private credit card program or other

extension of credit on behalf of that entity; or

* a securitization or secondary market sale related to a transaction of

the consumer;

* If the consumer consents;

* To protect the confidentiality or security of the Bank’s records;

* To protect against fraud;

* For risk control purposes or for resolving customer disputes;

* To persons holding a legal or beneficial interest relating to the

consumer;

* To persons acting in a fiduciary capacity on behalf of the consumer;

* To provide information to insurance rate advisory organizations,

guaranty funds, rating agencies, persons assessing the Bank’s

compliance with industry standards, and the Bank’s attorneys,

accountants, and auditors;

* To law enforcement agencies if permitted or required under other

provisions of law;

* To a consumer reporting agency in accordance with the Fair Credit

Reporting Act;

* In connection with a sale or merger if the disclosure concerns solely

consumers of the businesses;

* To comply with federal, state, or local laws;

* To comply with subpoenas or summons by governmental authorities;

or

* To respond to judicial process or governmental authorities for

examination, compliance, or other lawful purposes.

At The First National Bank, we value our customer relationships. We want you to understand how we use the information you provide and our

commitment to ensuring your personal privacy. If you have any questions about how the Bank protects your confidential information, please call us at

308-697-3335 or stop in at our main office at 707 Patterson, Cambridge, NE.

I hereby choose to opt out from disclosure of personal information made to any third party that is not an affiliate.

Date:_________________________________

Signature:________________________________________________________________

(7/14/00)