Consent Agreement Questions and Answers

Below are answers to the most common questions about Advantage Bank's recent Consent Agreement with the FDIC. If you have any additional questions or concerns that are not addressed here, please contact our customer service department at customerservice@advantagebanks.com and we'll respond as soon as possible.

1. I understand the bank has entered into a Consent Agreement, what does that mean?

It means the bank has agreed to a plan with regulators that provides us with specific goals and objectives we need to achieve in areas that need improvement. Although formally called a Cease and Desist Order, in reality, this is an agreement to change the way we do certain things. These Agreements are frequently used by bank regulators to help banks modify their practices.

2. What are you going to do about it?

The Board of Directors, management and staff of the bank are all committed to addressing the regulators' concerns. Most of the objectives set forth in the Agreement have been incorporated into our management practices and are very simply sound and prudent banking practices. We have been addressing the areas of concern within our loan portfolio over the past year and have already made significant progress with several terms of the Agreement. We are confident these issues will be addressed in the timeframe required by the regulators.

3. Why are we just hearing about the Agreement now?

Federal regulators determine when this confidential information can be released by the bank. Due to the Agreement not being finalized until recently, neither the bank nor the FDIC were allowed to publicly discuss the terms of the Agreement. Once the Agreement was signed and the timeframes determined, the bank adopted a plan to disclose its contents to our employees, shareholders and customers as quickly and effectively as possible.

4. Are my deposits safe?

Yes, each depositor is insured up to $250,000 by the FDIC. You may also be covered by FDIC insurance for deposits over $250,000 based on the ownership of your accounts. If you have over $250,000 with us, a bank officer would be happy to review your accounts and ownership to make sure that you are adequately covered. Also, the Transaction Account Guarantee Program that is in effect through June 30, 2010 provides for unlimited FDIC insurance for all checking accounts and NOW accounts earning .50% interest or less. You may also call the FDIC Hotline toll-free at 1-877-275-3342 or visit their website EDIE (Electronic Deposit Insurance Estimator) is an interactive application that helps you calculate the insurance coverage of your accounts.

5. Whom should I contact with other questions?

Branch Presidents, Branch Managers and Department Supervisors are available to speak with you. Tom Chinnock, Jeff Kincaid or Mike Bond can be reached at 613-1982. You may also forward any questions to our customer service email and we will make sure your questions are handled promptly.