Notice of your Financial Privacy Rights

We, our, and us, when used in this notice, mean Lone Star Bank, S.S.B.

This is our privacy notice for our customers. When we use the words "you" and "your" we mean the following types of customers:

Our consumer customers who have a continuing relationship by purchasing or holding financial products or services such as a(n):

Deposit account
Loan account
Safe deposit box
Retail installment contract we hold and service

We will tell you the sources of the information we collect about you. We will tell you what measures we take to secure that information.

We will tell you what information we share about you with other entities. We will explain what your rights are, and how you can exercise them. If you share an account relationship with someone else, such as a joint account holder or co-borrower, we suggest that you share this information with such persons to ensure that each of you is aware of our policy and your options.

We first define some terms.

Nonpublic personal information means information about you that we collect in connection with providing a financial product or service to you. Nonpublic personal information does not include information that is available from public sources, such as telephone directories or government records. Hereafter, we will use the term "information" to mean nonpublic personal information as defined in this section.

An affiliate is a company we own or control, a company that owns or controls us, or a company that is owned or controlled by the same company that owns or controls us. Ownership does not mean complete ownership, but means owning enough to have control.

A nonaffiliated third party is a person we do not employ or a company that is not an affiliate of ours. This is also known as nonaffiliated third party, or simply, an "other party."

Opt out means a choice you can make to prevent certain sharing of information. We will explain how you can exercise this choice.

The Information We Collect

We collect information about you from the following sources:

Information you give us on applications or other forms
Information about your transactions with us
Information about your transactions with our affiliates
Information about your transactions with other parties
Information from a consumer reporting agency

The Confidentiality, Security, and Integrity of Your Information

We restrict access to information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards to protect this information.

Your Information and Our Affiliates

We may disclose information about you to our affiliates. Here are the kinds of information and the source of that information:

Transaction and experience information from our account records:

Information about your transactions and experience with us, such as:

Name
Address
Account balances
Account activity
Types of accounts
Parties to the transaction
Payment history
Deposit history

Federal law allows us to disclose the information listed above with our affiliates. You do not have a right to opt out of the disclosure of this information.

Other information not taken from transactions and experience:

Information you give us on an application or other forms, such as:

Social Security Number
Assets
Income
Date of birth
Telephone number
Employment information

Information we receive from a credit reporting agency, such as:

Creditworthiness
Credit history

You may opt out of the disclosure of the information listed above.

Types of Affiliates

We may disclose information about you to the following types of affiliates:

Financial service providers, such as:

Holding company
Banks within our holding company

Reasons for Disclosure

We may disclose information about you to our affiliates to evaluate our total relationship with you and our family of companies and give you the best price that relationship deserves.

Future Affiliate Disclosure

We also reserve the right to disclose information about you in the future with the following additional types of affiliates:

Financial service providers, such as:

Mortgage bankers
Insurance agents

Your Information and Other Parties

In addition to our policy with respect to affiliates, we may disclose information to other parties. Here are the kinds of information we disclose to these other parties:

Information you give us on an application or other forms, such as:

Name
Address
Assets

Information about your transactions with us, such as:

Types of accounts

You may opt out of the disclosure of the information listed above.

Types of Other Parties

We may disclose information about you to the following types of other parties:

Financial service providers, such as:

Securities broker-dealers

We may also disclose information about you to other parties as permitted by law.

Reasons For Disclosing

We may disclose information about you to other parties to provide you with information about additional products and services.

Future Disclosure to Other Parties

We also reserve the right to disclose information about you in the future with the following types of parties:

Financial service providers, such as:

Insurance agents

Information About Former Customers

We do not disclose information about former customers, except as permitted by law.

Your Right to Block the Disclosure of Your Information

Affiliates. We are permitted to disclose information about our transactions or experiences with you to affiliates. You do not have the right to opt out of the disclosure of this particular type of information. We may also disclose other information to our affiliates (that is, information beyond our transactions and experiences with you), unless you tell us to not disclose this other information.

Other Parties. If you do not want us to share your information with other parties, you can block the release of certain information. This is known as your right to "opt out."

Your decision to block the disclosure of your information will apply to information collected from all products and services you receive from us. Remember, though, that your opt out will not apply to information we share that is related to your actual transaction and experience with one of us, which we make available to our affiliates.

If you have obtained one or more products or services jointly, each owner or purchaser has a separate right to opt out. If one of you chooses to opt out of the disclosure of your information and any other does not, only information regarding the other parties who do not opt out will be disclosed. However, each joint owner or purchaser may opt out of the sharing of information collected in conjunction with the product or service on behalf of all other joint parties.

If you previously sent us an opt out, then we will continue to apply your instruction to all the information you can now opt out of as described in this disclosure. If you have joint accounts, your previous opt out will also apply to information about other parties to your accounts as described in this disclosure.

If you wish to opt out of the disclosure of your information, you may do so by requesting an Opt Out Notice and return it to us at this address:

Lone Star Bank, S.S.B.
Drawer A
Moulton, Texas 77975

Texas Notice

This institution is chartered, licensed, or registered under the laws of the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Savings & Mortgage Lending. Any consumer wishing to file a complaint against this institution should contact the Texas Department of Savings & Mortgage Lending through one of the means indicated below:

In Person or U.S. Mail: 2601 North Lamar Boulevard, Suite 201, Austin, Texas 78705-4294;
Telephone No.: 877-276-5550;
Fax No.: 512-475-1360;
E-mail: smlinfo@sml.state.tx.us
Website: www.sml.state.tx.us