October 31, 2008

Dear Teutopolis State Bank Customers:

    Pick up the paper, or hear the news on television or radio, and you get constant reports of a housing crisis and financial turmoil.  You ask yourself "How strong is my bank? Is my money safe in my bank?"

    With great confidence, I feel I can assure you that Teutopolis State Bank is very strong financially and that your deposits here are very safe.

    The bank subscribes to a rating service from TheStreet.com.  This rating service assigns a financial safety rating of "A" or "Excellent" to Teutopolis State Bank.  This is the highest rating of all banks in Effingham County.  In fact, fewer than three percent of the nation's banks and thrifts meet TheStreet.com Ratings' criteria for exceptional financial strength.  Our loyal and dedicated employees have worked very hard and are very proud of their roles in achieving this position of strength.

    As you have probably heard, the FDIC has temporarily increased insurance coverage for each depositor up to $250,000 through the end of 2013.  In addition, Teutopolis State Bank has in excess of $22,000,000 in capital to further protect your deposits, over and above the FDIC coverage.  Our bank is in a very liquid position to meet all of your deposit and loan needs.  Our asset quality is very strong, as evidenced by minimal delinquencies in our loan portfolio.  Teutopolis State Bank has no "subprime" loans, or types of loans that are at the root of the current financial turmoil.  I feel the strength of our bank is a credit to our customers and our community.

    Teutopolis State Bank remains ready, willing, and able to serve our customers and to meet the needs of our community.  We are proud of the role we have played in our community for almost 100 years.  Our goal is to continue to earn your confidence, and to serve you in all  your banking needs.  On behalf of the directors, officers, and employees of Teutopolis State Bank, thank you for your business.

    Should you have any questions, or concerns, please contact any of our officers.

Sincerely,

Thomas L. Runde
President