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Failed Bank Information Question and Answer Guide for The Elizabeth State Bank, Elizabeth, IL FDIC Call Center Toll free number 1-800-591-2820 Hours of Operation – Central Time Thursday, July 2, 2009:   Until 9:00 p.m. Friday, July 3, 2009:   9:00 a.m. – 6:00 p.m. Saturday, July 4, 2009:   9:00 a.m. – 6:00 p.m. Sunday, July 5, 2009:   Noon – 6:00 p.m. Thereafter:   8:00 a.m. – 8:00 p.m. On Thursday, July 2, 2009, The Elizabeth State Bank, Elizabeth, IL, was closed by the Illinois Department of Financial and Professional Regulation, Division of Banking. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, Galena State Bank and Trust Company, Galena, IL acquired all the deposits and assets of The Elizabeth State Bank from the FDIC as Receiver for The Elizabeth State Bank. The total balance in your account(s) has been transferred to Galena State Bank and Trust Company. Your funds will be available for transactions during regular business hours at the former offices of The Elizabeth State Bank starting Monday, July 6, 2009. NOTE: In observance of the holiday, the bank will be closed from Friday, July 3rd, through Sunday, July 5th. The bank will reopen Monday, July 6th, 2009. You may continue using your same checks, ATM cards and debit cards until notified. All Direct Deposits, including Social Security checks, will continue as usual. All the stock of The Elizabeth State Bank was owned by Terrapin Bancorp, Inc., Elizabeth, IL. Terrapin Bancorp, Inc., and the interests of equity, debt holders, or other creditors of Terrapin Bancorp, Inc., are not included in the closure or receivership of the institution. In addition, any claims by equity holders in the Terrapin Bancorp, Inc., were not acquired.

Account(s): What about my account with The Elizabeth State Bank?

If you had an account with The Elizabeth State Bank, you now have an account with Galena State Bank and Trust Company, Galena, IL. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirement accounts, have been transferred to Galena State Bank and Trust Company, regardless of the dollar amount. No one lost any money on deposit in The Elizabeth State Bank.

Customers of both banks should continue to use their existing branches until Galena State Bank and Trust Company can fully integrate the deposit records of The Elizabeth State Bank.

Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.

ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with The Elizabeth State Bank?

Your ATM/debit card will continue to work, and bill paying will work as it has in the past.

Direct Deposits - Government Deposits: What will happen to my direct deposits?

Direct Deposits will continue as normal, including Social Security checks.

Existing Deposits at Galena State Bank and Trust Company: I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $250,000. Are all funds insured?

The accounts transferred to Galena State Bank and Trust Company will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

All interest on insured deposits accrued through July 2, 2009, will be paid at your same rate. Galena State Bank and Trust Company will review rates and notify you. However, please be advised that from and after the date of closing, Galena State Bank and Trust Company will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, Galena State Bank and Trust Company shall permit depositors to withdraw their deposits without penalty for early withdrawal.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank.  Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.

Loans/mortgages: What about my loan or mortgage with The Elizabeth State Bank?

All mortgages and loans have been assumed by Galena State Bank and Trust Company. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to The Elizabeth State Bank and send your payments to the same address.

Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer.  All prior contacts remain the same.

Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

Outstanding Checks: What about checks that I have written on my account with The Elizabeth State Bank?

Your checks will clear up to the available balance in your account. You can continue to use your existing checks.

Safe Deposit Boxes: How can I claim the contents of my safe deposit box?

It is business as usual. You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.

Shareholders: What about my shares of stock?

There was no publicly owned stock in Elizabeth State Bank. If you are an equity shareholder, your shares are in Terrapin Bancorp, Inc., Elizabeth, IL, the holding company for Elizabeth State Bank and not the institution. Terrapin Bancorp, Inc., and the interests of equity, debt holders, and/or other creditors of Terrapin Bancorp, Inc., are not included in the closure or receivership of the institution. Please do not file a claim with the Receiver, rather contact Terrapin Bancorp, Inc., directly for information:

Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.

Unpaid Bills: I did some work for the bank and have not been paid. What should I do?

All claims against The Elizabeth State Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:

Last Updated 07/06/2009

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