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Federal Deposit
Insurance Corporation

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

Question and Answer Guide

Alliance Bank, Culver City, CA

FDIC Call Center
Toll free number 1-800-523-8275
Hours of Operation – Pacific Time
Friday, February 6, 2009: Until 9:00 p.m.
Saturday, February 7, 2009: 8:00 a.m. – 6:00 p.m.
Sunday, February, 8, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.

The following answers are provided to the most commonly asked questions by customers of the failed bank. The total balance in your account(s) has been transferred to California Bank & Trust, San Diego, CA and will be available for transactions during regular business hours at the former Alliance Bank branches.

You can continue to use your same checks, debit cards and ATM cards until notified.

Direct deposits, including Social Security checks, will continue as usual.

What about my account with Alliance Bank?

If you had an account with Alliance Bank, you now have an account with California Bank & Trust. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirement accounts have been transferred to California Bank & Trust, San Diego, CA, regardless of the dollar amount. No one lost any money on deposit in Alliance 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.

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What about my ATM/debit card and/or bill paying with Alliance Bank?

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

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

As an All-Deposit Transfer transaction, the total of all deposit accounts, including brokered deposits, have been assumed by California Bank & Trust.

Be advised, however, that from and after the date of closing, the California Bank & Trust will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, California Bank & Trust shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.

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What will happen to my direct deposits?

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

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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 California Bank & Trust 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.

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Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

California Bank & Trust will be reviewing rates and will notify you.

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.

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What about my loan or mortgage with Alliance Bank?

All mortgages and loans have been assumed by California Bank & Trust. 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 Alliance Bank and send your payments to the same address.

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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.

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

Please contact the Office of Public Affairs:

David Barr

LaJuan Williams-Young

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What about checks that I have written on my account with Alliance Bank?

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

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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.

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What about my shares of stock, notes or subordinated notes that I own in Alliance Bancshares California?

There was no publicly owned stock in Alliance Bank. If you are an equity shareholder, your shares are in Alliance Bancshares California, Culver City, CA the holding company for Alliance Bank, and not the institution. Alliance Bancshares California and the interests of equity, debt holders or other creditors of Alliance Bancshares California are not included in the closure or receivership of the institution. Please contact Alliance Bancshares California directly for information.

On February 6, 2009, Alliance Bank was closed by the California Department of Financial Institutions. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, California Bank & Trust acquired the assets and most of the liabilities of Alliance Bank from the FDIC as Receiver for Alliance Bank. Any claims by equity holders were not acquired.

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

FDIC as Receiver of Alliance Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent

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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.

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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:

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