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<td width="393" rowspan="2"><p align="center"><font face="Arial"><strong><big>Security
Bank </big></strong></font></p>
<p align="center"><font face="Arial"><strong><big>Year 2000 Readiness Disclosure</big></strong></font></p>
<p align="left"><strong>What is the Year 2000 Challenge?</strong><br>
<br>
All businesses must meet the Year 2000 Challenge resulting from computer programming that
used only two digits to represent a year (1998 as 98, for example). When some computer
systems encounter the Year 2000, the two-digit year &quot;00&quot; may be interpreted as
1900 instead of 2000. As a result, nearly all computer systems, except for the most recent
software and hardware versions, may fail to function or may produce errors after December
3l ,1999. This problem is not just confined to computer systems. Any electronic device may
be affected. For example, it may affect elevator controls, VCRs, security systems, airline
flight schedules, and other timed/dated applications.<br>
<br>
<strong>How could such a widespread situation exist for so many years?</strong><br>
<br>
There are several reasons why the Year 2000 issue has not been addressed until recently:</p>
<ul>
<li><p align="left">In the 1970's storing data on computers was more expensive than it is
today. Computer programmers began writing the date in two-digit fields to reduce costs.</p>
</li>
<li><p align="left">With the constant improvements in information technology, many companies
assumed that computer systems would be replaced by the Year 2000. But this has not always
been the case.</p>
</li>
<li><p align="left">Over the years, computer programmers continued to write dates as
two-digit numbers because converting to four digits was often not feasible.</p>
</li>
</ul>
<p align="left"><strong>So how does this affect me?</strong><br>
<br>
Virtually anyone who relies on computers or electronic devices that refer to date and time
may be affected in one way or another. That includes everything from VCRs, traffic lights,
and telephone systems to credit cards, driver's licenses, banks, insurance, and
investments. When the Year 2000 arrives, non-compliant systems may either assume an
incorrect date, causing processing errors or shut down altogether. Some errors will be
minor annoyances, while others, such as health care, financial, and military systems may
have very serious consequences.<br>
<br>
<strong>How did Security Bank meet the Year 2000 Challenge?</strong><br>
<br>
Our Board of Directors approved a Year 2000 Project Management Plan. The Plan established
a Year 2000 Committee and designated a Year 2000 Project Coordinator. The Coordinator
updated and continues to update the Board of Directors monthly regarding the Year 2000
Project.&nbsp; Our Bank President designated the Year 2000 Project as <em>Top Priority</em>.
</p>
<p align="left">The Year 2000 Project Management Plan was broken into five phases:
Awareness, Assessment, Renovation, Validation, and Implementation. In the assessment
phase, the Committee inventoried all software, hardware, non-computer equipment,
infrastructure, and third-party service providers. Security Bank has completed all the
above phases for its mission critical systems.</p>
<p align="left"><br>
<strong>Does Security Bank have a contingency plan?</strong><br>
<br>
Security Bank has developed comprehensive contingency plans to ensure the bank can
continue its core business operations in the event of unforeseen disruptions caused by the
century date change. We have tested and validated these contingency plans. &nbsp;
Furthermore, a certified public accounting firm has independently validated our main
operating system, Vision.<br>
<br>
<strong>What are Federal Banking Regulators doing to make sure my bank follows through
with its plans?</strong><br>
<br>
The Federal Financial Institutions Examination Council (FFIEC) has published several
guides that financial institutions must follow. Our primary regulator, the Federal Deposit
Insurance Corporation (FDIC) has conducted two on-site visits regarding Security Bank's
Year 2000 efforts. The FDIC continues to closely monitor financial institutions' Year 2000
efforts.<br>
<br>
<strong>Does the Year 2000 date change affect my deposit insurance coverage?</strong><br>
<br>
No. The Year 2000 date change does not affect your deposit insurance coverage. Your
deposits at an FDIC insured bank will continue to be protected up to $100,000 against loss
due to the failure of the institution.<br>
<br>
For more information about FDIC deposit insurance coverage, call FDIC's Consumer Call
Center toll-free at 800-934-3342 (800-925-4618 for the hearing impaired) or visit the
FDIC's website on the Internet at www.fdic.gov.<br>
<br>
<strong>Should I withdraw cash from my account on or before December 31, 1999?</strong><br>
<br>
You should not need to withdraw any more cash than you normally require for a long
weekend. We are confident that Security Bank can provide uninterrupted service to you, and
as always, you will be able to write checks from your account.</p>
<p align="left"><strong>Will my direct deposits and automatic payments to third parties be
made timely and accurately?</strong><br>
<br>
Direct deposit and automatic payment transactions are handled through the ACH system
(Automated Clearing House). We have tested this system with our correspondent bank and the
Federal Reserve Bank.&nbsp; Validations indicate the system is Y2K compliant. &nbsp;
Furthermore, we have developed and tested contingency plans in the event that the system
or some aspect of the system is non-functional.</p>
<p align="left"><br>
<strong>Will my automatic and manual loan payments be accurately posted to my account?</strong><br>
<br>
Loan payments made by automatic withdrawals as well as those made by check should not be
affected by the century date change. Both loan payment methods have been tested and
independently validated by a certified public accounting firm.&nbsp; We have determined
that this system is Y2K compliant.<br>
<br>
<strong>Will I be able to access ATM machines and make point-of-sale transactions with my
Advantage ATM and Checkcard?</strong><br>
<br>
Security Bank participated in a user group test of the Advantage ATM network to ensure
that the Advantage system will interface correctly with our system. This test was
successful and indicated that the system is Year 2000 ready.&nbsp; However, because
numerous parties control the actual ATM machines, we cannot assure that the machines will
function properly. Likewise, we cannot assure that point-of-sale transactions will be free
of Year 2000-related problems. As always, though, you will have check-writing capabilities
and access to our tellers.<br>
<br>
<strong>Will I be able to use Telebank to obtain account balance information and transfer
funds between accounts?</strong><br>
<br>
We anticipate no disruption of Telebank service due to the century date change. The
Telebank vendor has provided us written confirmation that the system is Year 2000 ready. <br>
<br>
<strong>If I am unable to access my account via ATM, debit card or telephone, how will
Security Bank provide me access to my account?</strong><br>
<br>
As always, you may access your account by writing checks. You may also conduct your
business with a teller at the bank, mail in your deposits, or drop your deposits off at
the night depository box. Security Bank will ensure that sufficient staff is available to
meet any increased lobby activity.</p>
<p align="left"><strong>If errors in electronic transactions occur, how will Security Bank
assist me?</strong><br>
<br>
As with any error in an electronic transmission, we will investigate the matter within 10
business days after we hear from you and will correct any error promptly. If we need more
time, however, we may take up to 45 days to investigate your complaint or question. If we
decide to take the extra time, we will credit your account within 10 business days for the
amount you think is in error, so that you will have use of the money during the time it
takes us to complete our investigation. However, if we ask you to put your complaint or
question in writing and we do not receive it within 10 business days, we may not credit
your account. If we decide that there was no error, we will send you a written explanation
within three business days after we finish our investigation. You may ask for copies of
the documents that we used in our investigation.<br>
<br>
<strong>What types of records does the Bank maintain?</strong><br>
<br>
Financial institutions are required to keep backup records for account transactions so
they can recover this information in case of an emergency. These backup records could be
used to identify and correct errors that might affect your deposit, loan, or other account
due to a Year 2000 computer problem.<br>
<br>
<strong>What types of records should I maintain prior to and after January 1, 2000?</strong><br>
<br>
It is always a good practice to check your transaction receipts and periodic statements,
and to keep records of your deposit, investment, and loan accounts. If you don't already
do so, you may want to start keeping records of banking transactions made a few months
before January 1, 2000, and beyond. These records will help you to resolve any account
errors that might occur due to the century date change.<br>
<br>
<strong>Who can I contact for more information?</strong><br>
<br>
You may contact Gina C. Fischer, Year 2000 Project Coordinator, at 605-338-3310 or
toll-free at 800-772-1891. You may also write to her attention at the Sioux Falls address:</p>
<p align="center"><strong>Security Bank </strong></p>
<p align="center"><font size="1">100 N. Phillips Ave.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1200 E Holly Blvd.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
325 NE 2nd St.&nbsp; <br>
PO Box 1418
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PO Box 350
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PO Box 506&nbsp; <br>
&nbsp; &nbsp;&nbsp;Sioux Falls, SD 57101
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brandon, SD
57005
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Madison, SD 57042&nbsp; </font></p>
<p align="left"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp; Phone: 605-338-3310 &nbsp;&nbsp;
&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Phone: 605-582-2265
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp; Phone:605-256-6991</font></p>
<p align="left"><strong>This Year 2000 Readiness Disclosure is provided in accordance with
the Year 2000 Information and Readiness Disclosure Act.</strong></p>
<p align="left"><font size="1">September 27, 1999
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Member FDIC</font></td>
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<p><font size="-1">Copyright © 1998, Security Bank &amp; Security Mortgage Corporation.
All rights reserved. Comments to <a href="mailto:webmaster@sec-bank.com">webmaster@sec-bank.com</a>.</font></p>
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