Bank Among Most Highly Capitalized

As a locally owned and managed community bank, American National (which includes American National and Peoples National Bank) has served local communities with conservative practices and traditional products for more than a century. We remain stable, safe, sound and secure. While some banks might be struggling, there are reasons why your deposits are safe at American National:

• Highly Capitalized - American National's capital - defined as Tangible Common Equity - was nearly 9% (as of December 31, 2008); compared to money center banks which were much lower, ranging from 1.5% to 3.8% (Source: SNL Financial).
• Strong Earnings - American National has had a decade of consecutive yearly earnings at or above peer returns. It has been and continues to be one of the most efficiently run banks in America.
• Liquidity - American National has strong liquidity. It's cash-on-hand liquidity and contingent liquidity exceeds all targets.
• Assets - American National has a well-balanced and diversified high quality asset portfolio.
• 4-Star Rating - Bankrate.com has awarded American National four stars as an indicator of a safety and soundness.
• Community Bank Difference - We provide local business loans, farm loans and home loans. American National did not invest in toxic assets as did some money center banks.
• Increased FDIC Coverage - Deposits are insured by the FDIC to $250,000 per interest bearing account.
• Bank Participation in the FDIC Transaction Account Guarantee Program ensures that any deposits in a non-interest bearing accounts are covered for the entire amount on deposit.

We appreciate the trust you have placed in us. You can rest assured that you and your financial needs are our first priority. You can count on us to provide the same excellent service and security that you've always expected.

For additional financial updates, we invite you to read the most current issue of Bank Connections, our customer newsletter.