Protecting the Confidentiality of Customer Information: Lone Star National Bank acknowledges the importance of the privacy, security and accuracy of customer financial information and will make every effort to protect customers' financial privacy through compliance with the federal Right to Financial Privacy Act, the Fair Credit Reporting Act, the Electronic Fund Transfer Act and other laws directed at protecting customer information. The Bank will consider both paper-based customer information, as well as information obtained and maintained through electronic means.

Lone Star National Bank does not release customer information to any third parties, whether a government authority or other party, without receipt of an appropriate subpoena or other order, a legal requirement to do so, or the written authorization of the customer, accept as permitted by law. However, the Bank reserves the right to use or release such information, at its discretion, within the confines of the legal parameters previously noted. Consideration of customer financial privacy rights will be given when filing suspicious activity reports or otherwise notifying authorities with regard to suspicious activity.

Any breach of confidentiality or variation from the Bank's Privacy, Suspicious Activity Reports, and Subpoenas Policy or Audit Procedures will be considered a serious violation of an officer or employee's terms of employment and may be grounds for termination. Officers and employees will report all breaches of confidentiality to the Security Officer for further investigation.

PERSONALLY IDENTIFIABLE FINANCIAL INFORMATION WE HAVE ABOUT YOU:
Lone Star National Bank receives information about you from:

SHARING OF CUSTOMER INFORMATION:
We do not reveal information about your account or other personally identifiable data to parties outside our bank unless:

1. It is requested or authorized by you;
2. It is required to complete a transaction requested by you;
3. The information is provided to a reputable credit bureau or similar reporting agency; or
4. The disclosure is lawfully permitted or required.

Sometimes, specific information has to be shared with outside companies we hire. These companies act on our behalf and they are obligated to keep our information that we provide to them confidential. These companies are not permitted to use our customer information for any other purpose.

SECURITY OF CUSTOMER INFORMATION:
Senior management oversees the maintenance of appropriate internal controls to address the security of customer information in both paper and electronic form. These procedures address access, storage, and disposal of confidential customer information. The Bank will make best efforts to ensure that third party service providers, under outsourcing arrangements with the Bank, protect the security and accuracy of customer information. Senior management will be kept advised of any breaches of these procedures or any detected deficiencies, and changes in procedure will be made in an expeditious manner as needed to protect customer information.

Lone Star National Bank
INTERNET / ONLINE PRIVACY GUIDELINES
Lone Star National Bank will take appropriate steps to ensure that the Bank's Web site is operated in a safe, sound and secure manner, as outlined in the Bank's Privacy Policy.

Additionally, the Bank maintains an Internet Web site through which personal information about consumers is collected. The Bank has established appropriate policies and practices related to online information collection in accordance with the requirements outlined in the Privacy Policy.

Certain personal information about visitors to this Web site is being collected by Lone Star National Bank. Personal information is collected from you at the time any sort of application is submitted to the Institution, at the time transactions are conducted through the online banking service, and at the time information is provided by you via e-mail at customerservice@lonestarnationalbank.com.

Information is collected for the purpose of processing your application, transaction, or request for information. The information will be used for the purposes of meeting your banking needs and requests, and providing services to you in the future. LSNB does not sell or share non-public customer information with any nonaffiliated third parties, except certain third party service providers. These entities will be required to execute a confidentiality agreement with the Institution, which requires adherence to the Institutions privacy policy and practices.

We are taking the following steps to ensure the privacy and accuracy of the information collected from or about you: Ensuring your financial privacy is of vital importance to the Institution and its employees. LSNB limits employee access to confidential customer financial information to those with a business reason for knowing such information. LSNB employees are trained to understand the importance of customer financial privacy and to properly handle confidential information. LSNB endeavors to maintain the most accurate and up-to-date customer records possible. If you find that your account information is not correct, current, or complete, please call or write to us at the telephone number or address on your account statement and appropriate corrections will be made as soon as possible.

Additionally, information you submit via our online banking service is protected by encryption technology, which scrambles account information to reduce the possibility of access by unauthorized individuals outside the Institution. To further protect your online banking service, LSNB requires the use of an ID and password. You can also help maintain the security of your banking information by not sharing your I.D. or password with anyone, by changing your password regularly, and by remembering to log off.

You may review the information we collect about you and correct any errors in that information by reviewing account statements and any other correspondence from us and notifying us of any inaccurate or outdated information at the address or phone number on your statements.

If you have questions about your personal information or would like to inform us about the potential misuse of your personal information, you may do so by sending a letter to Attn: Internet Banking Representative, 1017 Dove Ave., McAllen, Texas 78504, or sending a telefacsimile at (956) 984-2446, or calling us at (956) 984-2433, or by sending us an e-mail at info@lonestarnationalbank.com.

If you feel we have not met our obligations in the protection or use of your personal information, you may submit a complaint to LSNB. Any complaint will be handled in compliance with the LSNB Consumer Complaints Policy. Breaches of customer privacy are considered serious employee misconduct and may result in termination of the employee.