Change to Processing Order of Items

The purpose of this communication is to make you aware of changes to the processing order of items following our system upgrade. Our previous system processed transactions in batches at the end of the processing day. Our upgraded system now processes transactions in real time.

As transactions are presented throughout the day, they will process and post in real time. If a transaction that is presented overdraws your account, your account will be overdrawn in real time and will incur a fee (Overdraft/Non-Sufficient funds) at that time. There will no longer be a delay in time during the business day before the transaction posts to your account.

• Overdraft Privilege Disclosure—The Payment Order of Items section has been updated as follows:

• Payment Order of Items—We pay items based on our actual (ledger) balance. The actual (ledger) balance method calculates your account balance only based on transactions that have settled, and it does not reflect pending transactions or checks that have not posted to your account. Debits to your account are received in groups and/or individually throughout the course of a business day. We process ACH debits and credits, phone and online banking transfers, checks drawn on Woodlands Bank accounts, and deposits and withdrawals made in person at Woodlands Bank branches throughout the course of a business day in real time, in the order they are received. Debit Card and ATM transactions are processed as received. Preauthorized transfers are processed on their due date. Electronic transactions, including ACH credit and debits, that are received after the end of the business day are processed first the following business day. We process checks presented for payment at locations other than Woodlands Bank second, in serial number order.

• Truth In Savings Disclosure—The Processing Order section has been updated as follows:

• PROCESSING ORDER. We pay items based on our actual (ledger) balance. The actual (ledger) balance method calculates your account balance only based on transactions that have settled, and it does not reflect pending transactions or checks that have not posted to your account. Debits to your account are received in groups and/or individually throughout the course of a business day. We process ACH debits and credits, phone and online banking transfers, checks drawn on Woodlands Bank accounts, and deposits and withdrawals made in person at Woodlands Bank branches throughout the course of a business day in real time, in the order they are received. Debit Card and ATM transactions are processed as received. Preauthorized transfers are processed on their due date. Electronic transactions, including ACH credit and debits, that are received after the end of the business day are processed first the following business day. We process checks presented for payment at locations other than Woodlands Bank second, in serial number order. We can, in good faith, choose a different order of payment after giving you any legally required notice. The processing order of these items is important because if there is not enough money in the account to pay for the items in the order they are processed in accordance with the processing order, there may be an overdraft on your account which may result in overdraft or non-sufficient funds fees or an increase in the amount of these fees.

We understand that this may have affected some of our customers as the process began on October 7, 2024 with the implementation of our upgraded system. For the period from October 7, 2024 through November 30, 2024, we will be reviewing these charges and will be refunding any fees incurred for those customers that have brought or will bring their account to a positive balance on the same day the overdraft occurred. If you have incurred a fee related to this change in processing order and it has not been refunded, please contact Kelly Gillis via email at [email protected] or by phone at 570.320.2486.