Cape Fear Bank is an affiliate of our bank holding company, Cape Fear Bank Corporation.

Our corporate family recognizes, respects and protects the personal privacy rights of all our customers. We realize that our customers entrust us with personal information and it is our policy to maintain our customers’ information in a confidential manner. We are committed to providing the highest level of security and privacy regarding the collection and use of our customers' personal information, as well as personal information of all consumers who visit our institution and website.

This is our privacy notice for our customers. We, Our, and Us mean Cape Fear Bank and Cape Fear Bank Corporation. When we use the words "you" and "your" we mean the following types of customers:

All of our consumer customers who have a continuing relationship with us, such as:

        *   Deposit account
        *   Loan account
        *   Safe deposit box

We will tell you the sources for nonpublic personal information we collect on our customers. We will tell you what measures we take to secure that information.

We first define some terms.

Nonpublic personal information means information about you that we collect in connection with providing a financial product or service to you. Nonpublic personal information does not include information that is available from public sources, such as telephone directories or government records.

A nonaffiliated third party is a company that is not an affiliate of ours.

We collect nonpublic personal information about you from the following sources

        *   Information we receive from you on application forms
        *   Information about your transactions with us, or others
        *   Information about your transactions with nonaffiliated third parties
        *   Information from a consumer reporting agency

We do NOT disclose any nonpublic personal information about you to anyone, except as permitted by law.

The Confidentiality, Security and Integrity of Your Nonpublic Personal Information
We restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We do not disclose nonpublic personal information about former customers, except as permitted by law.

Notify Us of Inaccurate Information We Report to Consumer Reporting Agencies.

Please notify us if we report any inaccurate information about your account(s) to a consumer-reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent to us at the following address: CAPE FEAR BANK, 1117 MILITARY CUTOFF ROAD, WILMINGTON, NC