PROCESS-RELATED FAQS FOR THE CAPITAL PURCHASE PROGRAM

MUTUAL BANK FAQS

Q: What is the deadline for a mutual bank or savings association (mutual bank) to

apply to the Capital Purchase Program (CPP)?

A: The application deadline is 5:00 p.m., Eastern Time, May 14, 2009.

Q: How does a mutual bank know if it is a Qualifying Financial Institution (QFI)

eligible to participate in the Treasury Department’s CPP?

A: A mutual bank should review the eligibility requirements as described in the CPP term

sheet and related documents (which are available at

http://www.financialstability.gov/roadtostability/CPPappdocs.html). In addition, a QFI

should contact its appropriate Federal banking agency.

Q: What is the difference between this term sheet for mutual banks and the three

term sheets for mutual holding companies that Treasury issued on April 7, 2009?

A: Treasury has now issued four term sheets for mutual organizations. This mutual bank

term sheet provides for issuance of debt by banks that do not have holding companies.

Separately, Treasury has issued three other term sheets for mutual bank holding

companies: (i) the first provides for issuance of preferred stock at publicly-traded

subsidiary holding companies; (ii) the second provides for issuance of preferred stock at

privately held subsidiary holding companies; and (iii) the third provides for issuance of

debt by top-tier mutual holding companies that do not have subsidiary holding

companies.

Q: What is the regulatory capital treatment for capital raised by mutual banks

under this program?

A: Tier 2.

Q: How does a QFI apply to the Treasury Department’s CPP?

A: A QFI must submit an application to the appropriate Federal banking agency. Each

Federal banking agency has provided information on its public web site regarding where

an application for participation in the CPP should be directed. This information is

available at:

1. For the Federal Deposit Insurance Corporation: www.fdic.gov

2. For the Federal Reserve: www.federalreserve.gov

3. For the Office of the Comptroller of the Currency: www.occ.treas.gov

4. For the Office of Thrift Supervision: www.ots.treas.gov
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Q: Is the application for a mutual bank different from the standard CPP application

form?

A: No, all applications used by QFIs to apply for participation in the CPP are the same

standardized form. This application form is available on the public web sites of each

Federal banking agency referenced above and on Treasury’s website at

http://www.financialstability.gov. The Federal banking agencies, working in consultation

with the Treasury Department, developed a common application form that may be used

by all QFIs seeking to participate in the CPP. All inquiries regarding preparation of the

application should be directed to the appropriate Federal banking agency for the

applicant.

Q: Must an institution re-apply if it has already submitted an application?

A: No. It is not necessary to reapply if your applicable Federal banking agency has your

application. Note, however, the amount of Treasury’s investment must be between 1%

and 3% of an institution’s risk weighted assets based on information contained in the

latest quarterly supervisory report filed by the applicant with its appropriate Federal

banking agency, updated to reflect events materially affecting the financial condition of

the applicant occurring since the filing of such report.

Q: When will the definitive agreements be available?

A: Treasury expects the definitive agreements to be available within a few weeks of the

publication of the term sheet.

Q. Will applications filed by QFIs or the names of applying QFIs be released

publicly?

A. No. The CPP applications are confidential proposals submitted for review by each

institution’s appropriate Federal banking agency. Applications which are denied or

withdrawn will not be disclosed. However, Treasury will provide electronic reports

detailing any completed transactions, as required by the Emergency Economic

Stabilization Act of 2008, within 48 hours.

Q: Who should a QFI contact if they have questions regarding how to file an

application or the status of a submitted application?

A: The QFI should contact its appropriate Federal banking agency using the contact

information provided on the above referenced agency web site.

Q: Will a QFI receive verification that its application has been filed with its

appropriate Federal banking agency?

A: Yes.