HomeTown Bank (the “Bank”) is implementing this Privacy Policy because protecting your privacy, along with your financial assets, is at the core of our business. You have chosen to do business with us and we recognize our obligation to limit access to the information you provide us. We respect the expectations of our customers regarding privacy and confidentiality. Bank Management reviewed a variety of issuances from Federal banking agencies, as well as the U.S. Banking Industry Privacy Principles and carefully considered the policy in light of the Bank’s particular needs, including the Bank’s size, involvement with third parties and the needs of our customers.

Collection and Use of Information
The Bank collects, retains and uses information about customers only when we believe it is useful and lawful for our standard business purposes. Our “business” referred to in the preceding sentence includes opening and maintaining accounts, providing and maintaining loans, providing additional products and services, and advising you of new products and services.

Maintenance of Accurate Information
Keeping your account information accurate and up-to-date is very important to us. If your account information is incomplete or inaccurate, please call or write us at one of our friendly locations. We will correct any erroneous information promptly.

Employee Access to Information and Enforcement
HomeTown Bank limits access to customer information to those employees with a business reason for knowing such information. The Bank also educates all employees about the importance of confidentiality and customer privacy. To ensure that employees understand the importance of this issue to our customers, the Bank conducts both on-going and periodic privacy and confidentiality training.

Safeguarding the Security of Customer Information
The Bank has procedures in place that protect you, your privacy, and customer information. We limit access to your customer information by passwords, security codes and physical security. Customer information is stored securely and disposed of in ways consistent with confidentiality and privacy.

Restrictions on Disclosures of Account Information
The Bank will disclose information to third parties about your credit, your accounts and your transactions under any one of the following conditions:

Maintaining Customer Privacy with Third Parties
The Bank will take steps to ensure protection of customer information. Except as otherwise stated in this policy, the Bank will not sell or share customer information with third parties.

If the Bank uses a third party business partner, service company or other business partner to prepare account documentation, service accounts, or for other purposes, we will make reasonable efforts to verify the business partner treats customer information in a manner no less stringent than the Bank.

Disclosure of Privacy Principles to Customers
It is the policy of the Bank to communicate our Privacy Policy to our customers. We will periodically review the methods available for communicating the Bank’s Privacy Policy and determine whether the Bank’s current practices are meeting the needs of the Bank and our customers.