DEPOSIT QUESTIONS

What if I have more than $250,000 in my accounts at Silver Falls Bank?

All deposit accounts have been transferred in their entirety to Citizens Bank based in Corvallis, OR. All former Silver Falls Bank offices will reopen for normal business hours on Monday, February 23, 2009, as branches of Citizens Bank.

As an All-Deposit Transfer transaction, the total of all deposit accounts, whether within FDIC insurance limits or not, have been assumed by Citizens Bank and will be available for business as usual.

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.

Can I continue to write checks or use my ATM/Debit card?

You will be able to continue using your personal checks at this time, and your ATM/Debit card will continue to work. The ATM machine will be unavailable for a short period of time on Friday for processing; however, it will be operational shortly after that is accomplished and will be available as usual.

Will my automatic payments through BillPay continue?

BillPay will be available as normal over the weekend.

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

As an All-Deposit Transfer transaction, the total of all deposit accounts, including brokered deposits, have been assumed by Citizens Bank. Be advised, however, that from and after the date of closing, the Citizens Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, the Citizens Bank shall permit depositors, including brokered depositors, to withdraw their deposits without penalty for early withdrawal.

If you are a Depository Trust Company (DTC) participant broker, you must contact DTC with any questions or withdrawal requests. If you are a customer who has a Citizens Bank deposit through a broker, you must contact your broker with any questions.

A merchant will not honor my check. What can I do?

A copy of this document or the press release (www.fdic.gov/news/news/press/2009/pr09024.html) can be provided since both documents state all deposits have been transferred to Citizens Bank, and it is business as usual. Copies of this press release will be available at the former Silver Falls Bank branches. Depositors or merchants can also call the FDIC at 1-800-760-3639 or the former Silver Falls Bank branches.

How do I claim my account(s)?

Your account(s) has already been transferred to Citizens Bank, and your account(s) will be handled as usual. Any withdrawal, renewal or additional deposits will “claim” your account. Please be advised that if there is no activity in your account in the next 18 months, that money will be turned over to your state as unclaimed property. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer’s office or office of unclaimed property.

How does this failure affect me?

All deposits (both insured and uninsured) of Silver Falls Bank have been transferred to Citizens Bank, and it will be business as usual. If you held an account at Silver Falls Bank, you now have an account at Citizens Bank that is available to you at your former Silver Falls Bank branches during regular business hours.

If you had a loan with Silver Falls Bank, please continue to make your payments to the same address as you have in the past until you are instructed otherwise. Continue to make your checks payable to Silver Falls Bank.

The former Silver Falls Bank locations will reopen for normal business hours on Monday, February 23, 2009. You will have continued access to your money through your ATM/debit card and by writing checks.

Can Silver Falls Bank customers use Citizens Bank branches?

No, not at this time. During the transition of Silver Falls Bank records to Citizens Bank systems, Silver Falls Bank customers should continue to conduct their banking business at former Silver Falls Bank branches. You will be notified when you can use Citizens Bank branches.

Similarly, existing Citizens Bank customers cannot use former Silver Falls Bank branches and should continue to conduct their business at Citizens Bank branches.

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 accounts 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.

CDs from the assumed 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.

What will happen to my direct deposits?

Direct Deposits will continue as normal, including Social Security checks. If you need to change anything in the future, please contact or visit your former Silver Falls Bank branch location to make those arrangements.

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

No. 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.

How will I get my final account statement(s) from Silver Falls Bank?

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

Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, February 20, 2009 will be paid at your same rate. Citizens Bank will be reviewing rates and will provide further information soon.

If you deposited funds through a broker, the interest will accrue and be paid through Friday, February 20, 2009.

Can I cash my interest check or cashier's check?

Interest checks and cashier's checks will continue to clear.

Why doesn’t my Internet connection to Silver Falls Bank work?

The bank website will be available over the weekend and going forward for normal transactions.

What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?

Yes, all deposits, including IRAs have been transferred in their entirety to Citizens Bank. 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.

Will I lose anything on my deposit account?

No. All accounts have been transferred in their entirety to Citizens Bank and will be available starting on Monday, February 23, 2009.

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

Checks drawn on Silver Falls Bank that did not clear before Friday, February 20, 2009, will be honored up to your available balance.

What if I need information regarding my account during the time Silver Falls Bank was in business?

Please contact a representative of your new bank at your former Silver Falls Bank branch location to obtain a copy of any records you may need or visit your branch.

Who will send my 1098 and/or 1099 information after the end of the year?

Citizens 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.

Will I collect my uninsured deposits?

All deposits have been transferred in their entirety to Citizens Bank; therefore, there are no uninsured deposits.

Can funds be wired to me?

Please contact your former Silver Falls Bank branch location to obtain information regarding your wire request.

LOAN QUESTIONS

Will my automatic transaction 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 notify your loan officer and we will research your loan.

Will construction draws continue? Will my project be completed?

Each loan is being reviewed independently, and you should direct your questions to your loan officer. These will be determined on a case-by-case basis.

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 your loan officer.

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 your loan officer immediately.

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

No. The current fee structure will remain the same.

Who is my lender and has my loan contact changed?

Your loan is currently owned by the FDIC and is being serviced by all of the same personnel with whom you have worked in the past. All prior contacts remain the same.

Will my loan be sold?

Your loan may be sold at a future undetermined 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.

Can I continue to perform advances on my personal line of credit?

All Home Equity Lines of Credit (HELOCs) have been suspended at this time and have been retained by the FDIC. You may contact Citizens Bank to discuss establishing a new borrowing relationship.

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

Please contact your loan officer directly. The FDIC as Receiver for Silver Falls Bank will not be originating any new loans.

Will my loan sweep be discontinued?

This will be determined on a case-by-case basis. Please contact your loan officer.

Will my overdraft line of credit continue to cover my overdrafts?

Yes. These lines have been transferred to Citizens Bank. Please contact your new bank if you have additional questions regarding your accounts.

How and where do I make my payments?

You should continue to make your payments as agreed. Make checks payable to Silver Falls Bank and utilize the same payment address information.

You may continue to make your payments at the branch or by phone via check or credit card.

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 Silver Falls Bank has control of the asset.

What will happen to my SBA loan application in process?

The FDIC as Receiver for Silver Falls Bank will not be originating any new loans.

If your loan has been approved by the SBA, but is not yet funded, please contact your loan officer. He will direct you to the proper SBA contact to help you locate another approved lender.

If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you, and you will need to apply with another SBA-approved lender. Please contact your loan officer to make arrangements to retrieve your application from the bank.

What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan. 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

Why do all deposits, insured and uninsured, pass is 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 is only able to transfer all deposits if the uninsured amounts are covered by the premium. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.

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):

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

Please contact the FDIC Office of Public Affairs in Washington, DC:

Is the new bank insured by the FDIC?

Yes. Your deposit at Citizens Bank is insured by the FDIC, and each depositor is insured to at least $250,000, as established by law.

How can I claim the contents of my safe deposit box?

It is business as usual. You may go to your branch and access your safe deposit box or make appointments by calling your former Silver Falls Bank branch location.

I am a shareholder in Silver Falls Bank. What happens to my shares?

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.

I did some work for Silver Falls Bank and have not yet been paid. What should I do?

Please send your bills to the following address:

What happened, why did the bank fail?

Silver Falls Bank, Silverton, OR was closed Friday, February 20, 2009, by the Oregon Department of Consumer and Business Services. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public. Please see the Oregon Department of Consumer and Business Services press release for more information.

The good news is that no one lost any deposits as a result of the closure of Silver Falls Bank. To protect depositors, the FDIC Board of Directors approved the assumption of ALL of Silver Falls Bank’s deposits by Citizens Bank, headquartered in Corvallis, OR.

How can I apply to work for FDIC as a contractor or employee?

You may access information about doing business with the FDIC at
Procurement Opportunities (www.fdic.gov/buying/goods/opportunities/index.html)

You must also register in the Central Contractor Registration database at www.ccr.gov.
Entry into the database is not a guarantee that a contractor will receive a future solicitation.

You may also call 1-866-308-4470 for more information or send an email to ProcurementOpportunities@fdic.gov. Please include a statement of your corporate capabilities, contact information and Minority or Women-Owned Business (MWOB) status, if any.

To review positions currently available at the FDIC, visit Careers at FDIC (www.fdic.gov/about/jobs/index.html).