Letter from our President

July 2010

Dear Friends and Customers:

As we look at the end of the second quarter of 2010, I would like to share with you the exciting things happening at State Bank of Lizton. We continue to experience deposit growth as customers continue to feel an urgency to find a safe and stable place for their money. We continue to experience loan growth as we have continued to practice the basics of credit lending. People are looking for a place deeply rooted in their counties, their communities; a place where the employees share their values and work beside them to accomplish great things. As more and more big institutions close their doors and reopen under new out of area names and people become increasingly frustrated, we welcome the opportunity to serve your friends and families.

In that spirit, we recently celebrated a grand opening at our Plainfield location. Working side by side with strong business partners who share our belief in giving the best customer service ever, we hosted two great events. At our Thursday night VIP party, we introduced our banking philosophy to the business community. We also donated $1000 each to Habitat for Humanity in Hendricks County and the Summer Lunch Bunch in Plainfield. Six women from our bank participated in the Women’s Build in Plainfield, a week long volunteer effort to build a home in Plainfield, in conjunction with Habitat for Humanity. The Summer Lunch Bunch provided story readers and books for children attending our Saturday event. Also on Saturday, guests were treated to a free day of safe shredding for their personal and business documents; breakfast and lunch; money tree planting stations; Kids ID cards; and many chances to win $100 VISA gift cards and more.

We also kicked off a new checking account lineup. The star of the lineup is our new High Growth Checking which offers an incredible 3.00% APY and free nationwide ATM usage. We asked our customers what they wanted – higher rates and free ATMs – and figured out a way to deliver it. We are also excited about our new Student Checking with Smart Pack, a great account that encourages our students to take their hometown bank to college with them.  And in each checking account, we have bundled a savings, electronic and loan service with an invitation for a financial check up – because we want to build a relationship with you.

The year 2010 marks the 100 year anniversary of State Bank of Lizton. There are few businesses that can boast of being around for a century, and we are extremely proud of this accomplishment. During the year, we will be planning special events to celebrate this milestone including contests, family and pet photo days and more.

We continue to look for ways to save our customers time and money, while making sure that we both succeed. In the next few months, we will be announcing even more solutions to accomplish these goals.  If you have any questions or concerns, please feel free to contact me directly at 317-858-6136, contact your local State Bank of Lizton banker, or contact us at our web site, www.statebankoflizton.com.

Sincerely,

Leslie J. Mongell
President

Q: Is State Bank of Lizton stable and profitable?
A: Yes. State Bank of Lizton is an Indiana community bank founded in 1910 with a long history of stability. We take a conservative and community-minded approach to banking, and have an extremely strong capital position. State Bank of Lizton continues to maintain consistent financial performance during these trying financial times.

Q: How much of my deposits are insured?
A: The Federal Deposit Insurance Corporation (FDIC) basic insurance amount is $250,000 per depositor per insured bank through December 31, 2013. Certain retirement accounts, such as IRAs, are insured up to $250,000 per depositor per insured bank. You may qualify for more coverage at an insured bank if you have multiple deposit accounts. Please contact your State Bank of Lizton banker to answer questions about your particular circumstances.

Q: Does the FDIC have enough money to cover insured deposits?
A: The FDIC has over $50 billion in reserves. Insured deposits have been available to customers of failed banks within just a few days. Since the start of the FDIC in 1933, not one penny of insured deposits has ever been lost by a customer of a federally insured bank.

Q: Following the failure of the IndyMac Bank in California, I’ve heard rumors that more banks will fail. Is this true?
A: IndyMac is just one of over 8,000 FDIC insured banks operating throughout the country, and represents only 0.2 percent of the banking industry’s assets. The overwhelming majority of banks in this country are safe and sound.

Q: Did State Bank of Lizton ever invest in sub-prime mortgages?
A: NO! We take the role of protecting our customers and their deposits very seriously. WE have never wavered from our traditional approach to residential mortgage lending, and have never engaged in any subprime lending.

Q: Do the current challenges facing FannieMae and FreddieMac impact State Bank of Lizton?
A: No. We support the Treasury Department’s plan to assist FannieMae and FreddieMac and believe both institutions will be stronger in the years to come. State Bank of Lizton will continue to offer a full complement of mortgage products to help achieve the American dream of home ownership.

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