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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Question and Answer Guide

Independent Bankers' Bank, Springfield, IL

FDIC Call Center
Toll free number 1-800-451-1093
Hours of Operation – Central Time
Friday, December 18, 2009:  Until 9:00 p.m.
Saturday, December 19, 2009:  9:00 a.m. – 6:00 p.m.
Sunday, December 20, 2009:  Noon – 6:00 p.m.
Thereafter:  8:00 a.m. – 6:00 p.m.

NOTE: Due to the Christmas Holiday, the call center will not be operational between the hours of 3 p.m. Thursday, December 24, and 8 a.m. Monday, December 28.


General Questions

  1. Independent Bankers' Bank failed: Why did Independent Bankers' Bank fail?
  2. Bridge Bank: What is a bridge bank, and why was it created?
  3. Bridge Bank closed: How long will the bridge bank be operational and what happens when it is closed? Will it be it liquidated?
  4. Level of service: Will my bank continue to operate at the same level of services as provided before? Will you continue to provide these services as expected by my customers?
  5. Communication Plan: How do you plan to communicate with the client banks and their customers about the status of this closing?
  6. Independent Bankers' Bank failures impact on other banker's banks: What impact, if any, do you think Independent Bankers' Bank failure will have on the remaining banker's banks?
  7. Bankers' Bancorp Inc. Stock: What will happen to my investment in Bankers' Bancorp, Inc.?
  8. Company debt: How will my company's debt, stock loans and/or borrowings be disposed?
  9. Working with same Independent Bankers' Bank representative: Will we continue to work with the same person we did prior to resolution?
  10. Discontinuing use of Independent Bankers' Bank name: Do we need to discontinue the use of anything bearing Independent Bankers' Bank name?
  11. New correspondent relationships: What guidance is available regarding the procedures and requirements to establish a new correspondent relationship?


Payment Solutions/Deposits

  1. Bank funds at risk: Are any of our bank funds at risk?
  2. Check deposits and associated credit: Will check deposits and associated credit continue to be handled the same way?
  3. Returned deposit items: Will the process I use to receive my RDI Cash Letters (Returned Deposited Items) be changed?
  4. Using IBB eXPRESS/ACH origination: If I use IBB eXPRESS today for ACH origination will I continue to use this connection?
  5. Routing number change: Will any routing numbers change?
  6. Continuation of wires: Will IBB Bridge Bank, N.A., continue to do wires or will member banks need to perform this service now?
  7. Clearing account: Do I need to move my clearing account?
  8. Payments Processing: How long will the bridge bank continue to provide payments processing services (i.e. ACH, Wire, Check, etc.)?
  9. ACH changes: What will change with ACH, ACH settlement, rejects?
  10. Independent Bankers' Bank reports: How do I get reports and other output previously provided by Independent Bankers' Bank?
  11. Customer changes: What changes will my customers see (statements, notices, etc.)?
  12. Pass-through reserves: Will my pass-through reserves for the current week be credited?
  13. Originating credit/debit ACH services: Through Independent Bankers' Bank, I am an originator of credit/debit ACH services for clients. Will those occur on a timely basis on Monday?
  14. Discount window advances: Our discount window advances currently settle at Independent Bankers' Bank. Will this relationship stay intact with IBB Bridge Bank N.A.?
  15. Deposit broker: I am a deposit broker or I have brokered deposits. What do I need to do?


Capital Markets

  1. How will Fed Funds be paid: How will I be paid for the Federal Funds sold to Independent Bankers' Bank (as principal)? Will this include interest through repayment date?
  2. Federal Reserve arrangements: If I am not paid immediately for my Federal Funds sold, have any arrangements been made with the Federal Reserve for short term borrowings by the respondent banks?
  3. Purchasing Fed Funds: Will I be able to purchase Federal Funds and how? Will my agent Federal Funds continue with interest? On Monday, will my Federal Funds credit line be available?


Safekeeping and Bond Accounting

  1. Length of bond accounting and safekeeping services: How long will the bridge bank provide bond accounting services and safekeeping services?
  2. Honoring purchase/sale commitments: I have a pending purchase/sale of securities that are to be settled on Monday. How will the commitment be honored? Will we continue to buy bonds the same way after resolution?


Commercial Banking

  1. Payments on participated loans: Will purchasers of participations continue to receive their share of payments collected on participated loans?
  2. Honoring purchase/sale commitments: I have a pending purchase/sale of securities that are to be settled on Monday. How will the commitment be honored? Will we continue to buy bonds the same way after resolution?
  3. Proportionate share on advances: If advances are allowed, will the proportionate share be requested from an investor in that loan?
  4. Collection/Litigations efforts: For any litigation Independent Bankers' Bank is currently involved in, will those be continued and under what name?
  5. Maturing loans: On loans reaching maturity that have a good pay record, and that we have agreed to renew in the past what process do we follow for them?
  6. Promissory note with different pricing scenarios: If a promissory note states that a client can convert part of their note to a different pricing scenario, i.e. variable to fixed under certain terms, do we honor such requests?
  7. Independent Bankers' Bank participation: Will IBB Bridge Bank, N.A. honor a commitment that Independent Bankers' Bank had on a loan participation that will close soon?
  8. Funding for unfunded loan portion: Will funding continue on the unfunded portion of a client bank's loan?


Trust and Financial Services

  1. Trust Assets: Are trust assets considered assets of the failed bank?
  2. Personal Trust Services: Will personal trust services as trustee, agent, guardian or custodian for client bank's, customers, and family accounts continue to be offered and rendered by IBB Bridge Bank, N.A.?
  3. Corporation and Business Trust Services: Client banks employee pensions, profit sharing and 401(k) plans represent a large portion of total trust accounts managed by Independent Bankers' Bank. Will these client bank retirement plans be affected by the failure?

GENERAL QUESTIONS

1. Independent Bankers' Bank failed: Why did Independent Bankers' Bank fail?

Independent Bankers' Bank failed due to significant losses related to its securities portfolio which eroded its capital position and reduced its ability to maintain adequate liquidity.


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2. Bridge Bank: What is a bridge bank, and why was it created?

A bridge bank is a new national bank chartered by the Office of the Comptroller of the Currency (OCC) and controlled by the FDIC in accordance with section 11(n) of the Federal Deposit Insurance Act.

Creating a bridge bank permits parallel functions to continue: First, the bridge bank allows client banks to maintain their correspondent banking relationship with the least amount of disruption. Independent Bankers' Bank Bridge Bank, National Association (IBB Bridge Bank, N.A.) will be the name of the bridge bank. Second, operating a bridge bank allows FDIC's preexisting efforts to market the bank to continue. Third, operating the bridge bank allows time for the failed bank to be liquidated in an orderly fashion if marketing efforts are unsuccessful.


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3. Bridge Bank closed: How long will the bridge bank be operational and what happens when it is closed? Will it be it liquidated?

IBB Bridge Bank, N.A. will be operational for a period of time. When the bridge bank is ultimately terminated, no additional services will be offered by IBB Bridge Bank, N.A. Current asset portfolios will be serviced, managed, and marketed through the receivership.


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4. Level of service: Will my bank continue to operate at the same level of services as provided before? Will you continue to provide these services as expected by my customers?

IBB Bridge Bank, N.A. will continue to operate correspondent services in a business as usual manner. However, loans and other assets will be handled by the Receiver according to FDIC policies.


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5. Communication Plan: How do you plan to communicate with the client banks and their customers about the status of this closing?

The FDIC's plan to communicate with Independent Bankers' Bank client banks is as follows:


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6. Independent Bankers' Bank failures impact on other banker's banks: What impact, if any, do you think Independent Bankers' Bank failure will have on the remaining banker's banks?

Since the FDIC created the bridge bank to take over Independent Bankers' Bank operations, there is not expected to be any meaningful impact on Independent Bankers' Bank clients or the other bankers' banks. While FDIC continues to market Independent Bankers' Bank, operating the bridge bank allows correspondent services provided to client banks to continue without disruption.


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7. Bankers' Bancorp Inc. Stock: What will happen to my investment in Bankers' Bancorp, Inc.?

All the stock of Independent Bankers' Bank was owned by the bank holding company, Bankers' Bancorp, Inc. Shareholders of equity stock, trust preferred securities, and subordinated debt of Bankers' Bancorp, Inc. should direct inquiries to:

Bankers' Bancorp, Inc.
3161 West White Oaks Drive, Suite 300
Springfield, IL 62704


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8. Company debt: How will my company's debt, stock loans and/or borrowings be disposed?

Bank stock loans will be independently reviewed and each borrower will be contacted to determine the various options available to them and the FDIC. The Receiver does not intend to package these loans to sell; however, it will continue to manage and service them until they are resolved.

The receiver's role is to maintain integrity and loan values in order to return the loans to the private sector as quickly as possible (with the exception of the bank stock loans). The process includes packaging the loans and offering them for sale. The marketing process is typically completed several months after a bank's failure.


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9. Working with same Independent Bankers' Bank representative: Will we continue to work with the same person we did prior to resolution?

Yes. IBB Bridge Bank N.A. will continue to employ key personnel during its tenure.


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10. Discontinuing use of Independent Bankers' Bank name: Do we need to discontinue the use of anything bearing Independent Bankers' Bank name?

You can continue to use anything that bears the Independent Bankers' Bank name. IBB Bridge Bank, N.A. will maintain Independent Bankers' Bank routing number.


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11. New correspondent relationships: What guidance is available regarding the procedures and requirements to establish a new correspondent relationship?

Guidance on obtaining correspondent services is available through the Federal Reserve Board.


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PAYMENT SOLUTIONS/DEPOSITS

12. Bank funds at risk: Are any of our bank funds at risk?

IBB Bridge Bank, N.A. is a newly chartered institution. The FDIC is the sole shareholder, and insured deposits continue to be fully insured.


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13. Check deposits and associated credit: Will check deposits and associated credit continue to be handled the same way?

Yes. There will be no changes in the way transactions are handled.


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14. Returned deposit items: Will the process I use to receive my RDI Cash Letters (Returned Deposited Items) be changed?

IBB eXPRESS will remain active and processing cash items and return items will remain unchanged.


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15. Using IBB eXPRESS/ACH origination: If I use IBB eXPRESS today for ACH origination will I continue to use this connection?

IBB eXPRESS will remain active and can be used to initiate ACH transactions. All warehoused and in-process ACH transactions will settle as scheduled.


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16. Routing number change: Will any routing numbers change?

No. IBB Bridge Bank, N.A. will use the same ABA routing number as Independent Bankers' Bank.


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17. Continuation of wires: Will IBB Bridge Bank, N.A., continue to do wires or will member banks need to perform this service now?

During its tenure, IBB Bridge Bank, N.A. will continue to initiate and process wires.


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18. Clearing account: Do I need to move my clearing account?

During its tenure, the IBB Bridge Bank N.A. will continue to provide this service. At the same time, FDIC is continuing with efforts to market the Independent Bankers' Bank franchise over the next few weeks. If the marketing efforts are unsuccessful, the bridge bank will continue to operate to allow sufficient time for client banks to transition services to another institution in an orderly manner.


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19. Payments Processing: How long will the bridge bank continue to provide payments processing services (i.e. ACH, Wire, Check, etc.)?

IBB Bridge Bank N.A. will continue to provide payments processing services for as long as the bridge bank is in existence.


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20. ACH changes: What will change with ACH, ACH settlement, rejects?

During the tenure of the bridge bank there will be no change to ACH processing.


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21. Independent Bankers' Bank reports: How do I get reports and other output previously provided by Independent Bankers' Bank?

Account Information reporting will continue to be accessible via IBB eXPRESS. Daily, weekly and monthly Account Summary statements will be available. Customized Cash Letter Availability Reports will continue to be available to all clearing customers via IBB eXPRESS. IBB Bridge Bank, N.A. will provide balance confirmations as needed for your financial institution's internal and external audit needs.


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22. Customer changes: What changes will my customers see (statements, notices, etc.)?

There should be no change since IBB Bridge Bank, N.A. will continue to operate all systems of Independent Bankers' Bank.


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23. Pass-through reserves: Will my pass-through reserves for the current week be credited?

Yes. The bridge bank enables the FDIC to continue providing this service to client banks.


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24. Originating credit/debit ACH services: Through Independent Bankers' Bank, I am an originator of credit/debit ACH services for clients. Will those occur on a timely basis on Monday?

Yes. IBB Bridge Bank, N.A. operations will continue to operate these services business as usual effective December 21, 2009.


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25. Discount window advances: Our discount window advances currently settle at Independent Bankers' Bank. Will this relationship stay intact with IBB Bridge Bank N.A.?

Yes. The settlement arrangement for discount window advances will stay intact with the bridge bank.


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26. Deposit broker: I am a deposit broker or I have brokered deposits. What do I need to do?

Brokered deposits will be held and paid directly by the FDIC. If you are a customer who has an Independent Bankers' Bank deposit through a broker, you must contact your broker with any questions.


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CAPITAL MARKETS

27. How will Fed Funds be paid: How will I be paid for the Federal Funds sold to Independent Bankers' Bank (as principal)? Will this include interest through repayment date?

Independent Bankers' Bank terminated purchasing unsecured Federal Funds for internal use as of December 18, 2009. IBB Bridge Bank, N.A. will not re-offer this product.

IBB Bridge Bank, N.A. will continue accepting Federal Funds from client banks and selling those funds to your approved upstream purchasing banks as agent.


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28. Federal Reserve arrangements: If I am not paid immediately for my Federal Funds sold, have any arrangements been made with the Federal Reserve for short term borrowings by the respondent banks?

No. All monies, including interest have been deposited by Independent Bankers' Bank into your account.


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29. Purchasing Fed Funds: Will I be able to purchase Federal Funds and how? Will my agent Federal Funds continue with interest? On Monday, will my Federal Funds credit line be available?

IBB Bridge Bank, N.A. will not purchase Federal Funds from client banks. However, we will continue to sell funds to clients who have established lines of credit from the former Independent Bankers' Bank.


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SAFEKEEPING AND BOND ACCOUNTING

30. Length of bond accounting and safekeeping services: How long will the bridge bank provide bond accounting services and safekeeping services?

All accounting and correspondent services will be business as usual during the tenure of the bridge bank.


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31. Honoring purchase/sale commitments: I have a pending purchase/sale of securities that are to be settled on Monday. How will the commitment be honored? Will we continue to buy bonds the same way after resolution?

If securities trades have not yet settled, we expect to complete the settlement of those trades. Also, at present we do not anticipate any changes in the way trades are settled. If a customer needs to put on new trades, we expect to do so as needed, during tenure of the bridge bank.


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COMMERCIAL BANKING

32. Payments on participated loans: Will purchasers of participations continue to receive their share of payments collected on participated loans?

IBB Bridge Bank, N.A. will continue to service participated loans and provide the downstream payments to the participants using the client banks' clearing account. Participants will receive their share of the payments without interruption.


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33. Advances on loans: Will advances be allowed (and under what circumstances) for any loans (personal or non-personal)?

All requests for the advance of funds will be reviewed individually to determine the current status of each loan, the reason for the advance, determine if all inspections have been completed to verify work performed as billed, and all necessary documentation is current.


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34. Proportionate share on advances: If advances are allowed, will the proportionate share be requested from an investor in that loan?

Yes, the Receiver will only address any unfunded portion that was a commitment on the part of Independent Bankers' Bank.


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35. Collection/Litigations efforts: For any litigation Independent Bankers' Bank is currently involved in, will those be continued and under what name?

Any current or pending litigation actions initiated by Independent Bankers' Bank may be stayed for up to 90 days. This will allow time to review each situation on a case-by-case basis.


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36. Maturing loans: On loans reaching maturity that have a good pay record, and that we have agreed to renew in the past what process do we follow for them?

The Receiver will independently review any request for an extension at maturity.


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37. Promissory note with different pricing scenarios: If a promissory note states that a client can convert part of their note to a different pricing scenario, i.e. variable to fixed under certain terms, do we honor such requests?

The Receiver and IBB Bridge Bank, N.A. will maintain the same process established by the bank with respect to adjustments to rates if the terms of the note allow for the adjustments and all other terms of the note have been maintained in a current status.


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38. Independent Bankers' Bank participation: Will IBB Bridge Bank, N.A. honor a commitment that Independent Bankers' Bank had on a loan participation that will close soon?

Each transaction will require independent review; however, it is likely that if a loan has not been booked on the records of Independent Bankers' Bank, prior to closing the Receiver will not advance funds for any new loans.


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39. Funding for unfunded loan portion: Will funding continue on the unfunded portion of a client bank's loan?

Requests for additional funding will be addressed immediately. FDIC will conduct a thorough analysis and may require additional information to perform its analysis and make a fact-based decision. Such information can include current financial statements and recent tax returns from borrowers and guarantors, and third party reports such as feasibility studies, market analyses, and appraisals. All requests will be reviewed individually to determine the loan status, the reason for the advance, and whether the funding is in the best interest of the receivership. FDIC will discuss funding decisions with participants.


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TRUST AND FINANCIAL SERVICES

40. Trust Assets: Are trust assets considered assets of the failed bank?

No. All trust assets transfer to IBB Bridge Bank N.A. IBB Bridge Bank, N.A. will continue to make every effort to service all trust accounts.


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41. Personal Trust Services: Will personal trust services as trustee, agent, guardian or custodian for client bank's, customers, and family accounts continue to be offered and rendered by IBB Bridge Bank, N.A.?

Yes. IBB Bridge Bank N.A. will continue to advise and safeguard client bank's customer assets, collect and distribute income, keep records, and provide reports in accordance with the arrangements made with client banks.


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42. Corporation and Business Trust Services: Client banks employee pensions, profit sharing and 401(k) plans represent a large portion of total trust accounts managed by Independent Bankers' Bank. Will these client bank retirement plans be affected by the failure?

No. As successor trustee or investment manager, IBB Bridge Bank, N.A. will continue to oversee assets for public or private organizations. Current trust services will be administered by the bridge bank. There will be no change in the trust services offered.


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SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.

For more information: www.fdic.gov/bank/individual/failed/ibb.html