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Question and Answer Guide

First State Bank of Altus, Altus, OK

FDIC Call Center
Toll free number 1-866-674-8944
Hours of Operation – Central Time
Friday, July 31, 2009:  Until 9:00 p.m.
Saturday, August, 1, 2009:  9:00 a.m. – 6:00 p.m.
Sunday, August 2, 2009:  Noon – 6:00 p.m.
Thereafter:  8:00 a.m. – 8:00 p.m.

On July 31, 2009, the Oklahoma State Banking Department closed First State Bank of Altus, Altus, Oklahoma. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, Herring Bank, Amarillo, Texas, acquired all liabilities and substantially all assets, except private label securities and a portion of the loan portfolio from the FDIC as Receiver for First State Bank of Altus. Any claims by equity holders were not acquired.

The following answers are provided for the most commonly asked questions by customers of a failed bank. The total balance in your account(s) with First State Bank of Altus, Altus, Oklahoma has been transferred to Herring Bank, Amarillo, Texas and will be available for transactions during regular business hours at the former office of First State Bank of Altus.

You may continue to use your same checks, ATM cards and debit cards until Herring Bank notifies you otherwise.

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

Account(s): What about my account with First State Bank of Altus?

If you had an account with First State Bank of Altus, you now have an account with Herring Bank. All deposit accounts, which include checking, savings, money market, CDs and retirements accounts, have been transferred to Herring Bank; regardless of the dollar amount. No one lost any money on deposit in First State Bank of Altus.

Customers of both banks should continue to use their existing branches until Herring Bank can fully integrate the deposit records of First State Bank of Altus.

To forewarn you of any scams, please be advised that you will not receive any e-mail notifications from the FDIC, the Receiver, or Herring Bank asking you to claim/unlock/un-suspend your account or to provide any private information. Please be watchful for and resist any scams to obtain information from you from individuals or entities purporting to act on behalf of First State Bank of Altus.

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ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with First State Bank of Altus?

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

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Brokered Deposits: 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 have been assumed by Herring Bank.

Be advised, however, that from and after the date of closing, Herring Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, Herring Bank 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 First State Bank of Altus deposit through a broker, you must contact your broker with any questions.

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Direct Deposits - Government Deposits: What will happen to my direct deposits?

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

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Existing Deposits at Herring 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 accounts transferred to Herring Bank 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 First State Bank of Altus 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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Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

All interest on insured deposits accrued through July 31, 2009, will be paid at your same rate. Herring Bank will review rates and notify you if interest rates will change.

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 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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Loans/mortgages: What about my loan or mortgage with First State Bank of Altus?

Herring Bank assumed most of the loans held by First State Bank of Altus. For the loans acquired by Herring Bank, your payment amounts and due dates are the same. If your payment(s) are deducted from your account, they will continue as in the past. You should continue to make your checks payable to First State Bank of Altus and send your payments to the same address.

The FDIC will contact those borrowers whose loans were not passed along to Herring Bank.

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

Please contact the Office of Public Affairs:

LaJuan Williams-Young

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Outstanding Checks: What about checks that I have written on my account with First State Bank of Altus?

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

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Safe Deposit Boxes: 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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Shareholders: What about my shares of stock?

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

FSB Bancorp Inc.
721 N. Main Street
Altus, OK 73521

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Transaction Types: 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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Unpaid Bills: I did some work for the bank and have not been paid. What should I do?

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

FDIC as Receiver for First State Bank of Altus
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent

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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 private 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: