Important Disclosure Regarding Deposit Insurance on Non-Interest Bearing Transaction Accounts


All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012.  This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest.  It also includes Interest on Lawyers Trust Accounts (“IOLTAs”).  It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit

Sale of Paper Savings Bonds to End

Important Notice: Over-The-Counter Sales of Paper Savings Bonds
to be Discontinued December 31, 2011

Please deliver this message to the appropriate staff at your branch offices.

The U.S. Department of the Treasury has announced it will end over-the-counter (OTC) sales of paper savings bonds at the end of this year.  This includes sales of savings bonds through financial institutions and applications mailed directly to the Federal Reserve Bank by customers.

Ending sales of paper bonds will save an estimated $70 million over the next five years and is a continuation of Treasury’s all-electronic initiative.  Savings bonds will remain available for purchase as electronic issues in TreasuryDirect®.

In response to this change, we ask that issuing agents stop accepting applications for paper savings bonds after December 31, 2011.  Customers have until the close of business on December 31, 2011, to submit their final purchase applications and funds.  Final applications mailed directly to the Federal Reserve by customers must be received by December 31, 2011.  The back-end processing schedule remains the same and agents will have the normal five-day period after December 31, 2011, to submit orders to the Federal Reserve Bank.

We encourage you to continue redeeming savings bonds for your customers.  There are currently more than 680 million paper bonds worth $183 billion dollars in the hands of the public. Your organization remains a valued partner with Treasury, and we appreciate your continued commitment to our programs.

For your convenience, we are providing a set of frequently asked questions, below, about this change.  If you have further questions, please contact us at (800) 553-2663.  While savings bonds will no longer be available in paper form, they remain available for purchase as electronic issues in TreasuryDirect. To learn more about electronic savings through TreasuryDirect visit


Kelly Bernard
Kelly A. Bernard
Vice President
Treasury Retail Securities
Federal Reserve Bank of Minneapolis


Ending Over-The-Counter Sales of Paper Savings Bonds
Frequently Asked Questions

What is changing?
The U.S. Department of the Treasury will end sales of paper Series EE and I savings bonds through over-the-counter channels (e.g., financial institutions and mail-in orders) at the end of this year. Savings bonds will remain available for purchase as electronic issues in TreasuryDirect.

Why is Treasury ending sales of paper savings bonds?
Ending sales of paper savings bonds is a continuation of the Treasury Department’s all-electronic effort announced in April 2010.  The initiative will increase electronic transactions to reduce costs and enhance customer service. Ending sales of paper bonds will save an estimated $70 million over the next five years. Technology makes it possible for us to sell and maintain savings bonds and other Treasury securities electronically in TreasuryDirect at a reduced expense to taxpayers.

When will the paper bond program end?
Over-the-counter sales of paper savings bonds will be discontinued at the end of this calendar year.  Final applications from customers must be received by December 31, 2011, by an issuing agent.   Applications mailed directly to a Federal Reserve Bank by customers must be received by December 31, 2011.

Does this change end all sales of paper bonds?
When the Treasury Department stops selling savings bonds through over-the-counter channels, it will effectively end the paper savings bond program, with one exception.  In 2010, a new Tax Time Bond Program was introduced making it possible for tax filers to purchase paper Series I savings bonds with their tax refunds.  That purchase option will remain available.

What happens to the previously issued paper bonds?
They are valid issues of the U.S. Treasury and will earn interest for 30 years or until redeemed.  Paper bonds can be converted to electronic savings bonds in TreasuryDirect using a program called SmartExchange®.  There’s no charge to convert paper bonds.  They won’t lose any of the interest earned, and they retain their original issue dates and interest rate terms.

What about people who’ve been buying paper bonds to pay future college expenses?
Paper savings bonds will no longer be available; however, the same education tax exclusion rules apply to electronic savings bonds in TreasuryDirect.

What about customers who like to give savings bonds as gifts?
TreasuryDirect has a gift feature so customers can buy electronic savings bonds as gifts.  The recipient of the gift must have a TreasuryDirect account (or be named on a minor linked account if under 18 years old) to receive the gift.  Customers can hold bonds in their Gift Box area in TreasuryDirect until the bonds are electronically delivered.

What is TreasuryDirect?
TreasuryDirect is a secure Web-based system that allows investors to establish accounts to purchase, hold and manage Treasury securities online.  Investors can purchase Series EE and I savings bonds, Treasury bills, notes, bonds and TIPS (Treasury Inflation-Protected Securities) through TreasuryDirect.

What are the advantages of TreasuryDirect?
• Investors can buy, manage and redeem Treasury securities online 24/7, all from the convenience of home, work or wherever they have secure Internet access.

• Investors can diversify their holdings since TreasuryDirect also offers Treasury bills, notes, bonds and Treasury Inflation-Protected Securities (TIPS).

• Investors can establish multiple registrations in one account.

• Investors can set up a simple payroll savings plan to automatically invest in savings bonds.

• Investors can schedule recurring purchases for savings bonds and marketable securities.

• Savings bonds purchases are generally added to the account in just one business day.

• Since the securities are electronic, there is no paper to lose, and no need to go to a local financial institution to redeem them.

• When the funds are needed, and after the minimum holding period has been reached, investors can redeem part or all of their savings bonds.  The payment will be deposited to the checking or savings account they choose and funds should reach the bank or credit union in just one business day.

• Details such as issue date and current value are tracked.

• Accounts can be established for minor children and for specific purposes such as education or vacations.

• A summary of account activity, including recent purchases, payments and account balance, is provided.

How can I get more information about TreasuryDirect?
For more information, visit

FNBP Welcomes Steven Hickman as President & CEO

Dade City, FL August 1, 2011— First National Bank of Pasco Chairman of the Board, Andy (AP) Gibbs, announced that Steven Hickman will join the Bank as President and CEO on August 1, 2011.  Mr. Hickman comes to us with a long history of successful banking in Florida.  A native of Columbus, Ohio, Steve moved to Florida in 1983 to work with First Florida Bank in Tampa which was acquired by Barnett Bank. In 1997, he became COO of BankAtlantic in Fort Lauderdale. Three years later he moved to IronStone Bank  as Regional President then founded the de novo Florida Shores Bank – Southeast in 2006 serving as its first President and CEO.

Steve and his fiancée Lynn will relocate to Dade City. Steve has three children: Tim (34) is married with two children and lives in Columbus, Ohio; Jackie (27) is a student at the Art Institute of Pittsburg and lives in Tampa; and Kyle (18) lives in Parkland, FL.  Steve loves to tour in his motor home.

Mr. Hickman succeeds Robert (Bobby) L. Sumner, who passed away this May. AP Gibbs said, “Bobby Sumner is impossible to replace and we miss him dearly. Steve will have very big shoes to fill. I am confident that Steve’s warm personality and banking expertise will serve our bank and our communities well. Steve is an outstanding banker with deep experience who demonstrates his commitment to assisting clients address today’s challenging economic environment. He is a welcome addition to the First National Bank family where we strive to be “your hometown bank.”

Steve Hickman responded, “I am excited to join First National Bank. The energy and professionalism of the team and the way their customers speak of them, shows how special a true community bank can be.”

Steve has served his present community well as a mentor in the Broward Alliance REACH (Minority Business) Program and the Broward County Schools Executive Partners Program.  He serves on the Board of the Greater Fort Lauderdale Chamber of Commerce, the Greater Pompano Beach Chamber of Commerce, The Pompano Economic Group, the City of Pompano Beach Economic Development Council, and United Way of Broward County.