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Question and Answer Guide

Citizens Community, Bank, Ridgewood, NJ

Is My Account Fully Insured? (closedbanks.fdic.gov/drrip/AFI/Search)

Electronic Deposit Insurance Estimator   (edie.fdic.gov)

The total balance in your account(s) has been transferred to North Jersey Community Bank, Englewood Cliffs, NJ and will be available for transactions during regular business hours at the former Citizens Community Bank’s sole office.

You may continue to use your same checks and ATM/Debit cards until notified.

All direct deposits, including Social Security checks, will continue as usual.

DEPOSIT QUESTIONS

1. Over $250,000: What if I have more than $250,000 in my accounts at Citizens Community Bank?
2. Account Hold: I have been advised there is a hold on my account. What does that mean?
3. ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?
4. Automatic Payments/Online Billpay: Will my automatic payments through Billpay continue?
5. Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits. What do I need to do?
6. Checks Not Honored: A merchant will not honor my check. What can I do?
7. Claim Account(s): How do I claim my account(s)?
8. Customer Impact: How does this failure affect me?
9. Deposits Existing at North Jersey Community 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?
10. Direct Deposits, Social Security: What will happen to my direct deposits?
11. Early Withdrawal Penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?
12. Final Statement: When will I get my final account statement(s) from Citizens Community Bank?
13. Interest: Will I continue to earn interest at the same rate?
14. Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?
15. Internet Connection: Will my Internet connection to Citizens Community Bank work?
16. IRAs: What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?
17. Lose Any Money: Will I lose anything on my deposit account?
18. Outstanding Checks: What will happen to the checks which have not cleared my account?
19. Records/Account Histories: What if I need information regarding my account during the time Citizens Community Bank was in business?
20. Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?
21. Uninsured: Will I collect my uninsured deposits?
22. Wire Transfer: Can funds be wired to me?

LOAN QUESTIONS

23. Automatic Payments: Will my automatic transaction payment still occur on its assigned date?
24. Construction Loan Draws: Will construction draws continue? Will my project be completed?
25. Construction Loan Voucher Control: Will my subcontractors be paid as before?
26. Escrows: Will you continue to pay my escrows?
27. Fees: Are there any changes to fees or charges due to this event?
28. Foreclosures: Will the FDIC continue foreclosures in process?
29. Lender and Contact Names: Who is my lender and has my loan contact changed?
30. Loan Sales: Will my loan be sold?
31. Line of Credit Advances – Home Equity: Can I continue to perform advances on my personal line of credit?
32. Loan in Process: I have a loan currently in process. How is my loan impacted?
33. Loan Sweeps: Will my loan sweep be discontinued?
34. Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?
35. Payments: How and where do I make my payments?
36. Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?
37. SBA Application in Process: What will happen to my SBA loan application in process?
38. What Happens Now: What will happen to my loan?

GENERAL QUESTIONS

39. All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured and uninsured, pass in some transactions but not in others?
40. FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?
41. Media: I represent a TV/Newspaper/Radio and would like some information.
42. New Bank Insured: Is the new bank insured by the FDIC?
43. Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
44. Shareholders: I am a shareholder. What happens to my shares?
45. Unpaid Bill: I did some work for Citizens Community Bank and have not yet been paid. What should I do?
46. What Happened: Why did the bank fail?

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DEPOSIT QUESTIONS

1. What if I have more than $250,000 in my accounts at Citizens Community Bank?

All deposit accounts have been transferred in their entirety to North Jersey Community Bank, based in Englewood Cliffs, New Jersey. The former Citizens Community Bank’s sole office will reopen for normal business hours on Monday, May 4, 2009, as a branch of North Jersey Community Bank.

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

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2. 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.

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3. 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.

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4. Will my automatic payments through Billpay continue?

Billpay will be unavailable over the weekend; however, it will be available on Monday morning.

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5. 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 North Jersey Community Bank. Be advised, however, that from and after the date of closing, the North Jersey Community Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, the North Jersey Community Bank shall permit depositors, including brokered depositors, impacted by reduced rates 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 North Jersey Community Bank deposit through a broker, you must contact your broker with any questions.

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6. 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/pr09062.html) can be provided as both documents state all deposits have been transferred to North Jersey Community Bank, and it is business as usual. Copies of this press release will be available at the former Citizens Community Bank's sole office. Depositors or merchants can also call the FDIC at 1-800-523-8503 or the former Citizens Community Bank.

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7. How do I claim my account(s)?

Your account(s) has already been transferred to North Jersey Community 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 in accordance with state law. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state’s treasurer’s office or office of unclaimed property.

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8. How does this failure affect me?

All deposits (both insured and uninsured) of Citizens Community Bank have been transferred to North Jersey Community Bank, and it will be business as usual. If you held an account at Citizens Community Bank, you now have an account at North Jersey Community Bank that is available to you at your former Citizens Community Bank’s sole office during regular business hours.

If you had a loan with Citizens Community Bank, please continue to make your payments to the same address as you have in the past until you are instructed otherwise. Please make your checks or money orders payable to FDIC as Receiver for Citizens Community Bank.

The former Citizens Community Bank's sole office will reopen during normal business hours on Monday, May 4, 2009. You will have continued access to your money through your ATM/debit card and by writing checks.

Customers of both banks should continue to use their existing branches until North Jersey Community Bank can fully integrate the deposit records of Citizens Community Bank.

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9. 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.

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.

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10. 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 Citizens Community Bank to make those arrangements.

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11. 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.

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12. When will I get my final account statement(s) from Citizens Community Bank?

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

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13. Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, May 1, 2009, will be paid at your same rate. North Jersey Community 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, May 1, 2009.

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

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

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15. Will my Internet connection to Citizens Community Bank work?

Online banking will remain available except for any types of draws/transfers from loans/LOCs.

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16. 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 North Jersey Community 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.

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17. Will I lose anything on my deposit account?

No. All accounts have been transferred in their entirety to North Jersey Community Bank and will be available starting on Monday, May 4, 2009.

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

Checks drawn on Citizens Community Bank that did not clear before Friday, May 1, 2009, will be honored up to your available balance.

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19. What if I need information regarding my account during the time Citizens Community Bank was in business?

Please contact a representative of your new bank at your former Citizens Community Bank to obtain a copy of any records.

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

North Jersey Community 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.

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21. Will I collect my uninsured deposits?

All deposits have been transferred in their entirety to North Jersey Community Bank; therefore, you have received your deposits in full.

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22. Can funds be wired to me?

Please contact your former Citizens Community Bank to obtain information regarding your wire request.

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LOAN QUESTIONS

23. 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 to research your loan.

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24. 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 your loan officer.

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25. 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.

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26. 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.

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

No. The current fee structure will remain the same.

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28. 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 borrower’s 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.

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29. 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.

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30. 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.

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31. Can I continue to perform advances on my personal 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 North Jersey Community Bank to discuss establishing a borrowing relationship.

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

Please contact your loan officer directly.

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33. Will my loan sweep be discontinued?

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

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

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

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35. 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 Citizens Community 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.

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36. 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 Citizens Community Bank has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.

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37. What will happen to my SBA loan application in process?

The FDIC as Receiver for Citizens Community 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.

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38. What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan. 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 may be, you have the right to independently refinance your loan with another lender.

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GENERAL QUESTIONS

39. Why do all deposits, insured and uninsured, 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 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.

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40. 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):

1. Click on Deposit Insurance (www.fdic.gov/deposit/index.html)
2. Click on "Are my deposits insured?" (www.fdic.gov/deposit/desposits/index.html)
3. Click on "EDIE" (edie.fdic.gov)

You may also order any FDIC publication:

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

Please contact the Office of Public Affairs:

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

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

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

It is business as usual. You may go to your former Citizens Community Bank’s sole office and access your safe deposit box or make appointments by calling your former Citizens Community Bank.

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44. I am a shareholder. 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.

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45. I did some work for Citizens Community Bank and have not yet been paid. What should I do?

Please send your bills to the following address:

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46. Why did the bank fail?

Citizens Community Bank, Ridgewood, New Jersey was closed Friday, May 1, 2009, by the New Jersey Department of Banking and Insurance. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. Share price does not trigger a bank closing and was not the reason for this failure. According to regulatory policy, there is no advance notice given to the public. Please see the New Jersey Department of Banking and Insurance press release for more information.

The good news is that no one lost any deposits as a result of the closure of Citizens Community Bank. To protect depositors, the FDIC Board of Directors approved the assumption of ALL of Citizens Community Bank’s deposits by North Jersey Community Bank, headquartered in Englewood Cliffs, New Jersey.

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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/citizens.html

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