First Liberty National Bank has adopted the following Privacy Principles:

Recognition of a Customer's Expectation of Privacy

First Liberty National Bank recognizes and respects the privacy expectations of our customers. First Liberty National Bank has established policies and procedures to prevent misuse of our customers' confidential and private information.

Definitions

• When the words "you" and "your" are used, we are referring to all consumer customers who have a continuing relationship with us.
• An "affiliate" means any company that controls, is controlled by, or is under common control with another company.
• "We," "our," and "us" means the corporate family of First Liberty National Bancshares, Inc., including its affiliated company, FLNB Insurance Agency, Inc..

Use, Collection and Retention of Customer Information

First Liberty National Bank collects, retains and uses information about our customers or former customers only as permitted by law and the institution reasonably believes it is useful in administering the institution's business, and in providing products, services and other opportunities to our customers. We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. We collect nonpublic personal information about you from the following sources:

• Information we receive from you on applications or other forms:
• Information about your transactions with us, our affiliates, or others; and
• Information we receive from a consumer reporting agency.

First Liberty National Bank does not currently sell data. Additionally, First Liberty National Bank does not have any future plans to change our policy on selling data. In the event that the institution begins to sell customer data, the customer will be notified and presented with the opportunity to "opt out," whereupon that customer's personal data will not be sold.

Maintenance of Accurate Information

First Liberty National Bank has established procedures to ensure that our customer's financial information is accurate, current and complete in accordance with reasonable commercial standards. First Liberty National Bank will respond in a timely manner to customer requests to correct inaccurate information.

Confidentiality and Security

First Liberty National Bank restricts access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. First Liberty National Bank will educate our employees about the importance of confidentiality and customer privacy. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Restrictions on the Disclosure of Account Information

First Liberty National Bank does not reveal specific information about our customers or their transactions to unaffiliated third parties for their independent use, unless the information is provided:

• To help complete a customer-initiated transaction,
• To help administer the institution's bona fide business,
• At the customer's request,
• To comply with a legal requirement (i.e., subpoena),
• To a reputable information reporting agency (i.e., credit bureau),
• Or after the customer has been informed about the possibility of such disclosure through a prior communication and is given the opportunity to decline (i.e., "opt out").

We may disclose all of the information we collect, as described above, to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements.

Maintaining Customer Privacy in Business Relationships with Third Parties

Whenever First Liberty National Bank does provide specifically identifiable customer information to a third party, First Liberty National Bank insists that the third party adhere to similar "Privacy Principles" that provide for keeping such information confidential.

Special Information Applicable to Electronic (Internet) Banking

First Liberty National Bank's "Privacy Principles" will apply to customers' confidential and private information with regard to both traditional and non-traditional (i.e., Internet) banking activities. However, due to the unique nature of the Internet and the ease with which information can be exchanged, First Liberty National Bank feels it is important for customers to be aware of the unique issues surrounding Internet Banking

To better serve legitimate Internet Banking customers:

First Liberty National Bank collects generic information about visitors to our website. This information includes the date and time of access, the Internet service provider's address, the web browser used, and the visitor's physical location.

First Liberty National Bank requires customers to utilize specific passwords for access to confidential and private information. First Liberty National Bank reminds customers of their responsibility to safeguard login IDs and passwords. In addition, commercial customers should carefully screen those employees to whom user IDs and passwords are granted.

First Liberty National Bank utilizes encryption, firewall, router, third party verification procedures and other security software and hardware to help prevent unauthorized eavesdropping of and access to customers' confidential and private information.

First Liberty National Bank utilizes virus protection software to help prevent the spread of computer viruses.

First Liberty National Bank utilizes "cookies" to help authenticate our customers' identities and to help facilitate the exchange of information between First Liberty National Bank systems and our customers' systems.

First Liberty National Bank reminds all of our customers that links in the institution's websites can be to websites not under our control. These websites will not necessarily comply with First Liberty National Bank's "Privacy Principles" and security standards.

First Liberty National Bank reminds all of our customers that confidential and private information may be compromised in both traditional and non-traditional banking activities. First Liberty National Bank can only establish policies and procedures to help restrict use of and access to confidential and private information. If any First Liberty National Bank customers believe that confidential and private information has been compromised, please contact First Liberty National Bank immediately so that the potential breach can be investigated.

Comments or Complaints by Customers

Any comments or complaints about this policy or any privacy-related issue or any inaccuracy in customer data can be made by contacting:

Sheldon Hendrix, Compliance Officer

First Liberty National Bank

P.O. Box 10109

Liberty, Texas 77575

1-936-336-6471