Overdraft Protection and Overdraft Privilege Disclosure

OVERDRAFT PROTECTION AND OVERDRAFT PRIVILEGE

First Bank of Alabama understands that unexpected overdrafts occur from time to time. Overdraft Coverage can help.

Overdraft Coverage Options

The choice is yours. Consider these ways to cover overdrafts:

Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account you may have at First Bank of Alabama for a fee. Call us at 256-362-2334, email us at overdraft@fbal.bank, or come by a branch to sign up for this service.

Overdraft Privilege allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Privilege is still available as secondary coverage if the other protection source is exhausted. Please review What Else You Should Know below for other important information.

If you would like to select Extended Coverage for future transactions call us at 256-362-2334, visit any branch, complete a consent form by clicking the link below and mail it to us at PO Box 797, Talladega, AL 35161, or email us at overdraft@fbal.bank.

Extended Coverage Consent Form

*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Overdraft Privilege Extended Coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.

If you want to discontinue Overdraft Privilege in its entirety, contact us at 256-362-2334, or email us at overdraft@fbal.bank.

WHAT ELSE YOU SHOULD KNOW

• A link to another account may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile, online, and telephone banking services to track your balance. For financial education resources, please visit www.mymoney.gov.
• The $10 Overdraft Fee that is charged if you overdraw your account is the same fee amount that is charged if an item is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or an Insufficient Funds Fee of $10. All fees and charges will be included as part of the Overdraft Privilege limit amount. Your account may become overdrawn more than the Overdraft Privilege limit amount because of a fee.
• There is a limit of 5 Overdraft Fees ($50) per business day we will charge you for overdrawing your account. We will not charge an Overdraft Fee if an account is overdrawn by $10 or less. These exceptions apply to consumer and business accounts.
• Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the Overdraft Fee from funds that you deposit or that are deposited into your account may call us at 256-362-2334 to discontinue Overdraft Privilege.
• If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again, First Bank of Alabama (“We”) may charge an Insufficient Funds Fee each time we return the item because it exceeds the Available Balance in your account. Because we may charge an Insufficient Funds Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge an Insufficient Funds Fee, the charge reduces the Available Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Available Balance in your account is sufficient to cover the item we may pay the item, and, if payment causes an overdraft, charge an Overdraft Fee. We may use the terms “item” and “transaction” interchangeably.
• This describes the posting order for purposes of determining overdrafts. We generally post items in the following order: 1) Credits, 2) Cash and over the counter items, 3) ATM and debit card transactions (low to high by dollar amount), 4) ACH debits (low to high by dollar amount) and 5) Checks (low to high by dollar amount). However, because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Insufficient Funds Fees assessed.
• Overdraft Privilege is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of your Overdraft Privilege and the amount of the overdraft fee. First Bank of Alabama is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by First Bank of Alabama of an overdraft check (or item, such as an ATM withdrawal) does not obligate First Bank of Alabama to pay any other overdraft check (or item), or to provide notice of its decision to refuse to pay such check (or item).
• Please be aware that this service is offered as an additional benefit of doing business with First Bank of Alabama and does not constitute either a written agreement of an obligation or a prearranged agreement for First Bank of Alabama to pay your overdrafts.We may withdraw this privilege at any time. Payment of any overdrafts will continue to be at the discretion of First Bank of Alabama, and payment of an overdraft does not obligate us or create an agreement or course of dealing on our part to allow overdrafts on any future occasion.
• First Bank of Alabama will not pay overdrafts for ATM or debit card transactions unless you have given consent for Extended Overdraft Coverage on your account. If you have questions regarding this privilege or wish to request removal of this service for future transactions, you may do so at any time by contacting us at 256-362-2334.
• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Account Agreement and Disclosure. The total (negative) balance, including all fees and charges, is due and payable upon demand.
• We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
• Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Privilege limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Understanding your Available Balance: Your account has two kinds of balances: the Ledger Balance and the Available Balance.

• We authorize and pay transactions using the Available Balance.
• Your Ledger Balance reflects the full amount of all deposits to your account as well as payment transactions that have been posted to your account. It does not reflect checks you have written and are still outstanding or transactions that have been authorized but are still pending.
• Your Available Balance is the amount available to you to use for purchases, withdrawals, or to cover transactions. The Available Balance is your Ledger Balance, less any holds due to pending debit card transactions and holds on deposited funds.
• The balance used for authorizing checks, ACH items, and recurring debit card transactions is your Available Balance plus the amount of the Overdraft Privilege limit and any available Overdraft Protection.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Privilege limit.
• The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Privilege limit.
• Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional overdraft fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Account Agreement and Disclosure, which will reduce the amount in your Available Balance.
• Please be aware that the Overdraft Privilege amount and Overdraft Protection amount is not included in your Available Balance provided through online banking, mobile banking or First Bank of Alabama’s ATMs.
• We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. If your account is overdrawn after the held funds are added to the Available Balance and the transaction is posted to the Available Balance, an Overdraft Fee may be assessed.
• Except as described herein, we will not pay items if the Available Balance in your account (including the Overdraft Privilege limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).

Understanding Overdraft Privilege Limits

• New eligible consumer and business checking accounts will receive a $100 Introductory Overdraft Privilege limit at account opening.
• Eligible consumer accounts in good standing, with aggregate deposits of $600 or more within 30 days of account opening, may have the Overdraft Privilege limit increased to $600.
• Eligible business accounts in good standing, with aggregate deposits of $800 or more within 60 days of account opening, may have the Overdraft Privilege limit increased to $800.
• Minor Accounts, Donation Accounts, Representative Payee accounts, Estate accounts, Trust accounts, Right Trac Checking and Money Market accounts are NOT eligible for Overdraft Privilege.
• Overdraft Privilege may be reduced if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 35 days for a minimum of one business day. Your account may be closed if the balance is not brought positive within 60 consecutive calendar days of the date the account became overdrawn.

If you have any questions about Overdraft Protection or Overdraft Privilege, please call us at 256-362-2334 or visit a branch.