Frequently Asked Questions
If I wait for the bridge bank to be sold, will I recover some of my investment as a shareholder?According to the FDIC website, IBB shareholders are in fourth position relative to any potential gains from the sale of the bridge bank, meaning that the chances of investment recovery are very slim. What’s more, various regulatory agencies are requiring shareholder banks to write off those stock investments prior to year-end 2009. While BANKERS’ BANK is not able to replace that value, we will recognize your IBB shareholder investment with a special discount, offering a monthly analysis credit for your Bankers’ Bank services. For the entire 2010 calendar year, 200% of your IBB stock investment will be applied toward the account analysis balance computation each month, reducing your monthly service charges. BANKERS’ BANK also intends to provide this credit in 2011 based on 50% of your shareholder investment.
Why not wait to see if another institution purchases the bridge bank?
The changes to IBB as it existed are well under way, such as the termination of key management staff announced last week. Going forward, the FDIC could approve the transfer of the bridge bank’s assets and liabilities, including your accounts, to another institution – but we believe this critical choice should be in your hands. You chose to work with a bankers’ bank for a reason. Like IBB, BANKERS’ BANK does not compete with you for business, and our relationships are people-driven. We already have a commitment to your market, which will be expanding significantly in the weeks ahead.
How are IBB services handled when switching to BANKERS’ BANK?
BANKERS’ BANK has developed an organized, systematic approach to transitioning new customers in a comfortable and timely process. The Correspondent Officer assigned to your bank will keep you informed every step of the way.
How do your services and costs compare to that of IBB?
Many correspondent banks are asking for your business right now, leaving you with the time-consuming process of evaluating service providers. Because BANKERS’ BANK has been serving banks in Illinois and Indiana for the past five years, we have the ability to serve your needs immediately – at a cost guaranteed to be less than what you experienced with IBB.
What is the general state of the other bankers’ banks in the nation? How does Bankers’ Bank compare?
Bankers’ banks are unique and the challenges posed to us are in many ways different than the challenges other institutions face. They are considered key players in the financial industry and are regulated and scrutinized as such. It’s estimated that between 5,500 and 6,000 community banks and savings institutions use services of one or more bankers’ banks (ABA Banking Journal, August 2007).
Bankers’ Bank compares very favorably with the other bankers’ banks in the country. Our key ratios are strong and we consistently place among the top quartile in performance.
Will there be additional mergers of bankers’ banks in the future?
We are not aware of any at this time, but if mergers occur we are prepared to assist any community bank in the Midwest
Are demand deposit accounts at Bankers' Bank insured?
Yes. We have voluntarily subscribed to the additional insurance program which insures over and above the normal $250,000 limit. Your deposits are fully insured.
What are the contact numbers for anyone at your organization and whom do I contact for specific products and services?
Specific contact information can be found throughout the website by choosing the appropriate service or department from the “Products and Services” tab on our home web page. OR simply call us at 800-388-5550 and we will direct you to the appropriate personnel.
How can I find out about the financial strength and viability of Bankers' Bank?
Our financial information/CALL report is available on our website.
How long will it take to transition from our current correspondent relationship to you?
We will be working vigorously to accommodate all requests as soon as possible. The first step is to open an account with us. Account Opening documents can be found on this website under a secured page.
Please contact us at 800-388-5550 and ask to speak to a Correspondent Officer to obtain access to those documents.
Do we need to buy stock in your organization to utilize your services?
No. However, we would like to have the opportunity to discuss the benefits of stock ownership in our organization at a later date. If you would like a copy of our latest stock prospectus please call us at 800-388-5550 and ask to speak to a Correspondent Officer.
Can we buy stock in Bankers’ Bank? What is the purchase price and also what has been your dividend policy?
We encourage you to buy stock in Bankers’ Bancorporation. If you would like a copy of our latest stock prospectus please call us at 800-388-5550 and ask to speak to a Correspondent Officer. The stock prospectus will include the current price and other pertinent details.
Are you participating with the TLGP (Temporary Liquidity Guarantee Program)?
Yes.
What’s different about you? I need to decide if I will convert to you or look for another correspondent bank.
Let’s start with what‘s in the name. We are a bankers’ bank which means we were chartered to work for community banks without competing for their customer base. What’s different? We have a large range of products competitively priced to offer to our customers. We believe in personalized service to assist you. You will be assigned a Correspondent Officer who will be in regular contact and an internal account representative who will manage your accounts on a daily basis. We offer one of the premier image cash letter (ICL) products in the nation. Also, for previous IBB shareholders we offer you two very important discounts, our equity incentive program (EIP) and our Partnership Incentive Program (PIP). SEE ANSWER BELOW FOR MORE INFO ON EIP AND PIP.
Please review this website for more information about our products and services. If you would like to speak to a Correspondent Officer, please call us at 800-388-5550.
Is there any additional incentive for previous IBB shareholders to convert to Bankers’ Bank?
Equity Incentive Program (EIP)- Bankers’ Bank will offer all past shareholders of IBB a discount on services based on the stock investment held in IBB. Think of this as a “thank you” for supporting your Bankers’ bank by becoming a shareholder.
Partnership Incentive Program (PIP) – A banks total account relationship will be taken into account which may qualify a customer for an additional discount on all analyzed charges. Think of this as a loyalty reward; the more products and services you use, the greater the discount.
For more information, please contact us at 800-388-5550 and ask to speak to a Correspondent Officer about special discounts for IBB shareholders
Who do I call for account questions?
When you transition to Bankers’ Bank you will be assigned primary contact who will be available to answer your account questions. In addition a Correspondent Officer has been assigned to your bank that is also knowledgeable about all of our products and services.
How does your pricing compare to my current correspondent?
Our products are competitively priced. For more information, please contact us at 800-388-5550 and ask to speak to a Correspondent Officer.
Can we visit your offices in Madison, Wisconsin? Will you come to see us if we request?
Our clients always have a standing invitation to visit us in Madison. In addition, various departments hold seminars and conferences throughout the Midwest. Any client utilizing those services is invited to attend. Finally your assigned Correspondent Officer and Account Representatives make an effort to visit you on a regular basis.
What steps are necessary on our part to convert to Bankers’ Bank?
The steps necessary to convert vary from bank to bank depending on what services you would like to move. In general, we conduct a telephone interview with you to determine what your specific product and service needs. From there, we prepare the necessary paperwork for your signature. Training will follow prior to the transition date.
For more information, please contact us at 800-388-5550 and ask to speak to a Correspondent Officer.
How does your federal funds program work?
Extensive information regarding our program is available on our website. We buy funds as principal and also have a well diversified agent program which incorporates the federal Excess Balance Account (EBA) program.
For more information, please contact us at 800-388-5550 and ask to speak to a calling officer.
What federal funds program fees do you charge?
Bankers’ Bank has always been quite competitive with rates and our program is one of the best diversified programs. Currently the rate assessed for our Agent fed funds program is 1/8th of 1% and no fee for our principal program.
Do you have both a principal and agent program?
Yes. Our website addresses both these programs
How do I determine which federal funds program I should or want to sell into?
We have a cash management program that will automatically sweep your excess funds into the appropriate program based on balances and rates. We pick only the program that best serves you.
Who are your upstream agent fed funds buyers?
Our well diversified program sells upstream daily to a number of credit-qualified financial institutions. The financial conditions of these institutions are monitored on a regular basis.
Are you using the Federal Reserve’s Excess Balance Accounts (EBA) program?
Yes we are as part of our overnight investment program, which incorporates the agent fed funds sales as well.
Do you cash manage accounts and if so, to what dollar amount do you sweep?
We provide a cash management feature for nearly all of our customer banks. We sweep to the nearest $1,000 of a prescribed target balance.
Investments and Safekeeping-What sort of investment services do you offer and what are the related fees?
Bankers’ Bank is unique in that we offer a wide range of investment services: sales and trading, safekeeping and portfolio accounting. Each of these areas access the same system and information interfaces from trading, safekeeping, pledging and portfolio accounting. Upon purchase of a bond from Bankers’ Bank the trader enters it into the system and it flows to portfolio accounting and safekeeping and your banks’ DDA account is automatically debited. This process eliminates redundancy and errors.
Similar to IBB, Bankers’ Bank uses the same vendor for safekeeping (SunGard InTrader) so advices, maturity notices etc. have the same look and feel. We also use a similar website to facilitate delivery of information to your bank, the log on and retrieval process is very similar. This will assist with a smooth transition.
The Bankers’ Bank Investment Department offers bond sales and trading, safekeeping and pledging, and portfolio accounting. Please visit our website for a brief description of these services and more.
Contact an Investment Representative 800-955-4468 for a fee schedule and proposal.
Safekeeping-My investment portfolio is currently held at “XYZ Bank” and I would like to move it to Bankers’ Bank, what is the transition process?
Contact our Investment Department at 800-955-4468 to schedule a transition date. Depending on the size and mix of your portfolio we would like 1-4 weeks lead time but will make every effort to meet your timeframe. We will send you our delivery instructions which you can forward to your current provider to expedite delivery to Bankers’ Bank.
Safekeeping/Pledging-Are you approved as a custodian for pledging to various depositors?
Bankers’ Bank is an approved custodian for FHLB Chicago, State of Illinois (state funds) and can facilitate pledging for public depositors in Illinois and Indiana. We are currently seeking approval at the FHLB Indianapolis and would like to add your bank to a list of banks supportive of this effort.
Can you process imaged (ICL) returns?
Yes, we forward image return files on to the Federal Reserve Bank. You can send and receive your image cash letter (ICL) return files using the Bankers’ Bank AutoSolution communication product.
Please contact Rose Davis at 515-331-0767 for more information on this service.
Do you provide services in the areas of ACH, wire, TT&L, Savings Bonds, etc.?
Yes. You can find additional information on this website.
For more information, please contact us at 800-388-5550 and ask to speak to a Correspondent Officer.
Do you offer merchant capture services? What about remote deposit merchant capture?
We accept a standard image file in the Fed x.937 file format from our customer banks. We can give you a list of vendors that our other customers are using for remote deposit but we do not offer the software or scanners directly.
Do you have the capability to work with my core and image vendor?
We currently work with over 700 financial institutions that have different core and image systems/vendors. We are able to process information based on current Fed-mandated standards/formats (ex. ICL, ACH). Today we successfully work with vendors who comply with these standards.
I had a line of credit for my bank’s holding company. Can I get one at Bankers’ Bank?
We do have holding company credit arrangements
For more information, please contact us at 800-388-5550 and ask to speak to Denise Bunbury in the credit department.
I have a credit card relationship through IBB. How do I transfer that business?
We offer a variety of credit card solutions at Bankers’ Bank and welcome the opportunity to discuss your current program and its transition to Bankers’ Bank.
For more information, please contact us at 800-388-5550 and ask to speak to the Bank Card department.
An Equal Housing Lender