FDIC Transaction Account Guarantee Program

Capital Pacific Bank is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through June 30, 2010, all noninterest-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.

For additional information about the Transaction Acount Guarantee Program and FDIC Deposit Insurance coverage please visit the FDIC website at:

http://www.fdic.gov/deposit/deposits/insured/index.html