IMPORTANT FDIC INSURANCE INFORMATION

TEMPORARY FDIC DEPOSIT INSURANCE INCREASE NOTICE

The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor.

TRANSACTION ACCOUNT GUARANTEE PROGRAM NOTICE

Lakeland Bank is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2010, all non-interest bearing transaction accounts* are fully guaranteed by the FDIC for the entire amount in the account. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under the FDIC’s general deposit insurance rules.

Note that actions taken that result in funds in a non-interest bearing transaction account* being transferred/swept to or reclassified as an interest bearing account or a non-transaction account will not be guaranteed under the Transaction Account Guarantee Program.

*Non-interest bearing transaction accounts include Lakeland Bank’s Non-Tiered Consumer Negotiable Order of Withdrawal (NOW) Accounts (Checkmate Platinum, Executive Checking, and NOW Personal Checking Accounts), traditional Demand Deposit Checking Accounts allowing for an unlimited number of deposits and withdrawals at any time (Bank at Work Checking, Totally Free Checking, NJ Consumer Checking, Totally Free Business Checking and Commercial Checking), Interest on Lawyers’ Trust Accounts (IOLTA) and Official Checks issued by Lakeland Bank.

The FDIC Provides Separate Insurance Coverage for Deposits Held in Different Ownership Categories
The coverage limits shown below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank. The chart below shows the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met. For more information about insurance coverage, visit http://www.fdic.gov/ or call toll-free1-877-ASK-FDIC (1-877-275-3342) Monday – Friday 8am - 8pm EST.

Basic FDIC Deposit Insurance Coverage Limits**   Single Accounts (owned by one person)   $250,000 per owner Joint Accounts (two or more persons)   $250,000 per co-owner IRAs and certain other retirement accounts   $250,000 per owner Trust Accounts***    $250,000 per owner per beneficiary subject to specific limitations and requirements Corporation, Partnership and Unincorporated Association Accounts   $250,000 per corporation, partnership or unincorporated association Employee Benefit Plan Accounts   $250,000 for the non-contingent, ascertainable interest of each participant Government Accounts    $250,000 per official custodian Non-interest Bearing Transaction Accounts (see above Transaction Account Guarantee Notice)   Unlimited coverage – only at participating FDIC-insured banks and savings associations       **On January 1, 2014, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be, insured up to $250,000 per owner. ***The FDIC has eased the rule governing "revocable trust accounts" that pass to named beneficiaries when the account owner dies. Now an account owner can name any person or charity as a beneficiary and the owner will qualify for the additional deposit insurance coverage. Read more about this change at: http://www.fdic.gov/news/news/financial/2008/fil08099.html.