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Failed Bank Information Question and Answer Guide for Millennium State Bank of Texas, Dallas, TX FDIC Call Center Toll free number 1-800-451-1093 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:   Noon – 6:00 p.m. Thereafter:   8:00 a.m. – 8:00 p.m. On Thursday, July 2, 2009, the Texas Department of Banking closed Millennium State Bank of Texas. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, State Bank of Texas, Irving, TX acquired substantially all assets and liabilities from the FDIC as Receiver for Millennium State Bank of Texas. Any claims by equity holders were not acquired. The following answers are provided for the most commonly asked questions by customers of a failed bank. The total balance in your account(s) with Millennium State Bank of Texas has been transferred to State Bank of Texas, Irving, TX and will be available for transactions during regular business hours at the former Millennium State Bank of Texas office. NOTE: In observance of the holiday, the bank will be closed from Friday July 3rd through Sunday, July 5th. The bank will reopen on Monday, July 6th, 2009. You may continue to use your same checks, ATM cards and debit cards until State Bank of Texas notifies you otherwise. All Direct Deposits, including Social Security checks will continue as usual.

Account(s): What about my account with Millennium State Bank of Texas?

If you had an account with Millennium State Bank of Texas, you now have an account with State Bank of Texas, Irving, TX. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirement accounts, have been transferred to State Bank of Texas, regardless of the dollar amount. No one lost any money on deposit in Millennium State Bank of Texas.

Customers of both banks should continue to use their existing branches until State Bank of Texas can fully integrate the deposit records of Millennium State Bank of Texas.

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 Millennium State Bank of Texas?

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, including Social Security checks, will continue as normal.

Existing Deposits at State Bank of Texas: I already have other deposit accounts with State Bank of Texas.  When combined with balances at this bank, my deposits exceed $250,000.  Are all funds insured?

The accounts transferred to State Bank of Texas 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 Millennium State Bank of Texas 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?

State Bank of Texas will be reviewing rates and will notify you.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter a new deposit agreement with State Bank of Texas. You can establish a new deposit agreement with State Bank of Texas by either renewing your CD or making a deposit to or withdrawing money from your account.

Loans/mortgages: What about my loan or mortgage with Millennium State Bank of Texas?

All mortgages and loans have been assumed by State Bank of Texas. 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 Millennium State Bank of Texas 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 Millennium State Bank of Texas?

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, notes or subordinated notes that I own in Millennium State Bank of Texas?

Shareholders have a claim against the receivership; however, they have the lowest priority of claim. You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes.

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

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.

Last Updated 07/02/2009

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