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Question and Answer Guide

Towne Bank of Arizona, Mesa, AZ

On Friday, May 7, 2010, Towne Bank of Arizona, Mesa, AZ was closed by the Arizona Department of Financial Institutions. The Federal Deposit Insurance Corporation(FDIC) was then named Receiver. Subsequent to the closure, Commerce Bank of Arizona, Tucson, AZ acquired substantially all the deposits and assets of Towne Bank of Arizona from the FDIC as Receiver for Towne Bank of Arizona. Any claims by equity holders were not acquired. Share price does not trigger a bank closing and was not the reason for Towne Bank of Arizona’s failure.

The total balance in your account(s) has been transferred to Commerce Bank of Arizona and will be available for transactions during regular business hours at the former Towne Bank of Arizona branches.

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

All Direct Deposits, including Social Security checks, will continue as usual.

DEPOSIT QUESTIONS

1. Account(s): What about my account with Towne Bank of Arizona?
2. ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Towne Bank of Arizona?
3. Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?
4. Direct Deposits - Government Deposits: What will happen to my direct deposits?
5. Existing Deposits at Commerce Bank of Arizona: 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?
6. Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

LOAN QUESTIONS

7. Loans/mortgages: What about my loan or mortgage with Towne Bank of Arizona?
8. Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

GENERAL QUESTIONS

9. Media: I represent a TV/Newspaper/Radio and would like some information.
10. Outstanding Checks: What about checks that I have written on my account with Towne Bank of Arizona?
11. Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
12. Shareholders: What about my shares of stock?
13. Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?
14. Unpaid Bills: I did some work for the bank and have not been paid. What should I do?

DEPOSIT QUESTIONS

1. What about my account with Towne Bank of Arizona?

If you had an account with Towne Bank of Arizona, you now have an account with Commerce Bank of Arizona, Tucson, AZ. All deposit accounts, which include checking, savings, money market, CDs and retirement accounts, have been transferred to Commerce Bank of Arizona, regardless of the dollar amount. No one lost any money on deposit in Towne Bank of Arizona.

Customers of both banks should continue to use their existing branches until Commerce Bank of Arizona can fully integrate the deposit records of Towne Bank of Arizona.

To forewarn you of any scams, please be advised that you will not receive any notification from the FDIC, the Receiver, or Commerce Bank of Arizona 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 the Towne Bank of Arizona, Commerce Bank of Arizona, or the FDIC.

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2. What about my ATM/debit card and/or bill paying with Towne Bank of Arizona?

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

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3. 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, excluding the Cede & Co. brokered deposits, have been assumed by Commerce Bank of Arizona. The FDIC retained the Cede & Co. brokered deposits and will pay those accounts off directly.

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

If you are a customer who has a Towne Bank of Arizona deposit through a broker, you must contact your broker with any questions.

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4. What will happen to my direct deposits?

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

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5. 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 Commerce Bank of Arizona 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 grace 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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6. Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

Interest on all deposits accrued through Friday, May 7, 2010, will be paid at your same rate. Commerce Bank of Arizona will review rates. If interest rates will change, you will be notified. Your interest rate may be reduced.

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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LOAN QUESTIONS

7. What about my loan or mortgage with Towne Bank of Arizona?

All mortgages and loans have been assumed by Commerce Bank of Arizona.  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 Towne Bank of Arizona and send your payments to the same address.

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8. 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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GENERAL QUESTIONS

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

Please contact the Office of Public Affairs:

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11. What about checks that I have written on my account with Towne Bank of Arizona?

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

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11. 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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12. What about my shares of stock?

All shares of Towne Bank of Arizona were owned by its holding company, Towne Bancorp, Inc., Mesa, AZ. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of Towne Bancorp, Inc., please do not contact or file a claim with the Receiver. You may contact Towne Bancorp, Inc. directly for information as follows:

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13. 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 had been for the FDIC to transfer only the insured deposits in a Purchase and Assumption transaction; however, the temporary increase in the deposit insurance limit has assisted in the transfer of all deposits more often in the past year.

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

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

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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: www.fdic.gov/bank/individual/failed/townebank.html

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