First Bank of Delaware to Exit Payday Loan Program

First Bank of Delaware received correspondence from its primary regulator, the Federal Deposit Insurance Corporation (FDIC) concerning short-term (also referred to as "payday") loans and installment loan products made by the Company through various third-party marketers and servicers. The correspondence indicated that the Company should cease offering these loans through these channels unless the Company can demonstrate that it can correct all identified problems and change oversight of the program to ensure problems do not re-occur in the future.

Accordingly, the Company will cease offering short-term ("payday") loans in a time period that is yet to be determined, and will cease offering installment loans through ACE Cash Express in Texas within the next 30 days. The Company will also meet with the FDIC within the next 30 days to review its loan programs and will present proposals to address the concerns raised by the FDIC concerning its installment loan products. These changes in programs could have a material adverse effect on the Company's earnings.

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