Failed Bank Information

Question and Answer Guide for Ideal Federal Savings Bank, Baltimore, MD

Ideal Federal Savings Bank, Baltimore, MD was closed Friday, July 9, 2010, by the Office of Thrift Supervision. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. The FDIC will transfer insured deposits of Ideal Federal Savings Bank, to Manufacturers and Traders Trust Company (M&T Bank), based in Baltimore, MD. The FDIC has retained all loans.

No one lost any insured deposit money as a result of the closure of Ideal Federal Savings Bank. To protect depositors, the FDIC Board of Directors approved the transfer of Ideal Federal Savings Bank's insured deposits by M&T Bank.

THE INSURED BALANCE IN YOUR ACCOUNT(S) HAS BEEN TRANSFERRED TO M&T BANK AND WILL BE AVAILABLE FOR YOU TO CLAIM YOUR INSURED DEPOSITS. YOU CAN CLAIM YOUR MONEY STARTING MONDAY, JULY 12 UNTIL SATURDAY, JULY 24, 2010 AT THE M&T BRANCH LOCATED AT 715 NORTH HOWARD STREET, BALTIMORE, MD. THE M&T BRANCH HOURS ARE MONDAY THROUGH FRIDAY FROM 9:00 AM UNTIL 6:00 PM AND SATURDAY FROM 10:00 AM UNTIL 12:00 PM. INSURED DEPOSITS NOT CLAIMED BY JULY 24, 2010 WILL BE MAILED BY TUESDAY, JULY 27, 2010, TO YOUR ADDRESS ON RECORD WITH IDEAL FEDERAL SAVINGS BANK.

YOU CANNOT CONTINUE TO USE YOUR CHECKS.

ALL DIRECT DEPOSITS, INCLUDING SOCIAL SECURITY CHECKS, WILL CONTINUE AS USUAL.

To forewarn you of any scams, please be advised that you will not receive any e-mail notification from the FDIC, the Receiver, or M&T Bank to claim/unlock/unsuspend your account or to provide any private information. Please be watchful for and resist any such scams to obtain information from you by individuals or entities purporting to act on behalf of Ideal Federal Savings Bank or the FDIC.

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DEPOSIT QUESTIONS

Over $250,000:What if I have more than $250,000 in my accounts at Ideal Federal Savings Bank?

You should call the FDIC to schedule a telephone appointment with an FDIC Claims Agent at 1-800-350-2746. If you have more than $250,000 in your interest bearing account, or if the total of your related interest bearing accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent.

If you have an interest bearing account or group of interest bearing accounts that exceeds $250,000, you may need to complete certain declarations or affidavits and provide documentation so that the FDIC can make an insurance determination on your account(s).

If your deposits DO NOT exceed $250,000, or if your deposits are in a non-interest bearing transaction account(s) you DO NOT need to complete these documents or contact the FDIC.

An account hold may be placed on an account due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in a trust. These forms can be mailed to you, or you can access them online at: Deposit Claims (www.fdic.gov/regulations/laws/forms/#DepositClaims).

If you have a question regarding the completion of required affidavits or declarations, this website contains samples and instructions for completing the declarations. If your question is not resolved by going to the website, please call 1-800-350-2746 and indicate you have a form completion question.

Account Hold: I have been advised there is a hold on my account. What does that mean?

It is possible a depositor’s account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter.

Another reason an account hold may be placed is due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in the trust. Please contact the FDIC at 1-800-350-2746 to schedule a telephone appointment.

Account Insurance Status: Is there a method to verify whether my account(s) at Ideal Federal Savings Bank are fully insured?

A tool, Is My Account Fully Insured? (https://www2.fdic.gov/drrip/afi/index.asp), is available that allows failed bank customers the ability to verify whether their account is fully insured or if they need to contact the FDIC.  The link to specific contact information is https://www2.fdic.gov/drrip/afi/index.asp. This service will be available for use no later than the first business day after the bank's failure.  Once you enter your account number, your insurance status for that account will appear.  If there is a hold on your account, it may be due to the need for the additional documentation referenced in question number one. If there is a hold, you will need to contact the FDIC at 1-800-350-2746 to schedule a telephone appointment.

Checks/Debit Card: Can I continue to write checks or use my Debit Card?

No. You will not be able to continue using your personal checks or Debit Card at this time. You will need to go to the M&T location and claim your funds and open account with M&T or another bank of your choice.

Customer Impact: How does this failure affect me?

The effect of the failure on the average depositor of Ideal Federal Savings Bank will be minimal, as the FDIC transferred the insured deposits to M&T Bank. If you held an account at Ideal Federal Savings Bank, your account balances have been transferred to M&T Bank. And you can claim your insured deposits at 715 North Howard Street, Baltimore, MD, starting on Monday, July 12, 2010.

If the balance in your interest bearing account(s) (this includes any accounts in which you have an ownership) is less than $250,000, or if your deposits are in a non-interest bearing transaction account(s), no action is required on your part at this time. Your insured account balances will be transferred to M&T Bank and beginning Monday, July 12, 2010 you will be able to claim your insured deposits at M&T branch located at the M&T branch located at 715 North Howard Street, Baltimore, MD.

If you have more than $250,000 in your interest bearing account (or $250,000 in your IRA), or if the total of your related interest bearing accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. Certain entitlements and different types of accounts can be insured in excess of the $250,000. If you think you might have uninsured deposits, please see question number one for information regarding forms you may need to complete to expedite this process.

If you had a loan with the bank, continue to make your checks payable to FDIC as Receiver for Ideal Federal Savings Bank and mail to the same address you have used in the past until you are instructed otherwise.

Deposits Existing at M&T Bank: 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 transferred deposits will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.

Direct Deposits, Social Security: What will happen to my direct deposits?

The FDIC has arranged for all direct deposits, including Social Security checks, to be redirected to M&T Bank. These will be processed at the same time they have been processed in the past. These direct deposits will be processed through M&T Bank until Saturday, September 4, 2010. You should make arrangements with another financial institution or M&T Bank as soon as possible to ensure continued processing of your direct deposit. You may contact M&T Bank at 1-410-462-5090.

Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?

No.

Final Statement: When will I get my final account statement(s) from Ideal Federal Savings Bank?

You will receive your account statements at the same time you have received them in the past.

Interest: Will I continue to earn interest at the same rate?

No.

Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?

Yes. Interest checks and cashier's checks will continue to clear. This is because Official checks (those issued by institutions – for example, cashier's checks, certified checks, money orders) meet the definition of non-interest bearing transaction accounts. Under the Temporary Liquidity Guarantee Program, non-interest bearing transaction accounts are fully insured.

IRAs: What if I have an Individual Retirement Account (IRA)?

IRA funds are insured separately from other types of accounts up to $250,000.

If you close your IRA before maturity, you have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.

Lose Any Money: Will I lose anything on my deposit account?

Principal and interest on insured accounts, through Friday, July 9, 2010, are protected by the FDIC, to at least $250,000. All transferred accounts are insured to at least $250,000. Certain entitlements and different types of accounts can be insured in excess of the $250,000.

If you have more than $250,000 in your interest bearing account (or $250,000 in your IRA), or if the total of your related interest bearing accounts exceeds $250,000, your accounts may require review by an FDIC Claims Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. See question number one for information regarding forms you may need to complete to expedite this process.

Outstanding Checks: What will happen to the checks which have not cleared my account?

Checks that were drawn on Ideal Federal Savings Bank will be honored up to your available balance or the insured amount through Friday, July 9, 2010. Checks presented for payment after July 9, 2010, will be returned.

Records/Account Histories: What if I need information regarding my account during the time Ideal Federal Savings Bank was in business?

Please contact a representative of M&T Bank branch located at 715 North Howard Street, Baltimore, MD, to obtain a copy of any records you may need.

Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?

M&T Bank will be responsible for mailing your 1099 tax information. Your 1098 reporting will be done by the FDIC or the servicer of your loan. You will be notified of any changes in ownership or servicing of your loan.

Uninsured: Will I collect my uninsured deposits?

If you have a loan in the same name as your uninsured deposit account, it may be possible to offset your uninsured amount against your loan. You should discuss this with your Claims Agent during your appointment.

If it is determined that you have some uninsured funds, the FDIC will mail you a Receivership Certificate. This certificate entitles you to share proportionately in any funds recovered through the sale of the assets of Ideal Federal Savings Bank. You may eventually recover more of your uninsured funds as assets are liquidated.

When a financial institution is closed, and the Federal Deposit Insurance Corporation ("FDIC") is appointed as Receiver, one of FDIC's responsibilities is to sell the institution's assets to pay the depositors and its creditors. The money generated by the sale of these assets will flow through the Receivership, and periodic dividend payments will be made to proven claimants when excess cash is available. For an explanation of the dividend process, go to FDIC Dividends from Failed Banks (http://www2.fdic.gov/divweb/index.asp).

Of course, you will receive immediate full payment for your insured amount by transfer to M&T Bank.

Wire Transfer: Can funds be wired to me?

Please contact M&T Bank branch at 715 North Howard Street, Baltimore, MD, to obtain information regarding your wire request.

LOAN QUESTIONS

Automatic Payments: Will my automatic payment still occur on its assigned date?

You should experience no disruption in this service. We encourage you to check your bank account the day after your scheduled draft to verify the transaction. If the transaction did not occur, please contact the FDIC at 1-800-350-2746 to research your loan.

Construction Loan Draws: Will construction draws continue? Will my project be completed?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to the FDIC as Receiver by calling 1-800-350-2746.

Construction Loan Voucher Control: Will my subcontractors be paid as before?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to the FDIC as Receiver by calling 1-800-350-2746.

Escrows: Will you continue to pay my escrows?

All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please notify the FDIC at 1-800-350-2746 immediately.

Fees: Are there any changes to fees or charges due to this event?

No. The current fee structure will remain the same.

Foreclosures: Will the FDIC continue foreclosures in process?

At this point, all foreclosure actions have been suspended in order to properly evaluate the loans and the borrowers' ability to repay. It is our intention to sell all loans, and it will be up to the new owner to determine the best method of collection on the loan. There may be instances where FDIC will continue with the foreclosure process, but this will be done on a case-by-case basis.

Lender and contact names: Who is my lender and has my loan contact changed?

Your loan is currently owned by the FDIC. Please contact the FDIC by calling 1-800-350-2746.

Loan Sales: Will my loan be sold?

Your loan may be sold at a future date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer will be, you have the right to independently refinance your loan with another lender.

Line of Credit Advances – Home Equity: Can I continue to obtain advances on my line of credit?

All lines of credit, including Home Equity Lines of Credit (HELOCs), have been suspended at this time and have been retained by the FDIC. You may contact M&T Bank to discuss establishing a borrowing relationship.

Loan in Process: I have a loan currently in process. How is my loan impacted?

Please contact the FDIC by calling 1-800-350-2746.

Loan Sweeps: Will my loan sweep be discontinued?

This will be determined on a case-by-case basis. Please contact the FDIC by calling 1-800-350-2746.

Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?

No. These lines have not been transferred to M&T Bank.

Payments: How and where do I make my payments?

You should continue to make your payments as agreed. Make checks payable to FDIC as Receiver for Ideal Federal Savings Bank and utilize the same payment address information.

Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?

Any pre-payment penalty will be waived as long as FDIC as Receiver for Ideal Federal Savings Bank has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.

Each loan is currently being reviewed independently to determine the best action for that individual loan. Your loan may be sold at a future date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer may be, you have the right to independently refinance your loan with another lender.

GENERAL QUESTIONS

All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured or not, pass in some transactions but not in others?

When a buyer cannot be found for a failed bank, the FDIC honors its obligation to insured depositors by mailing an insurance check.

FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?

You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE):

You may also order any FDIC publication:

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

Please contact the Office of Public Affairs:

New Bank Insured: Is the new bank insured by the FDIC?

Yes. Your transferred deposit at M&T Bank is insured by the FDIC to at least $250,000, as established by law.

Unpaid Bill: I did some work for Ideal Federal Savings Bank and have not yet been paid. What should I do?

Please send your bills to the following address: