BlackRidgeBANK Merger Q&A

Why are you merging the banks into one bank?

There are many reasons BlackRidge Financial has decided to merge banks, and after much consideration, we have decided to move ahead. The reasons are principally operational and financial and not economic. A summary of the merger benefits is as follows: One combined board meeting, reduction in the number of bank regulators and examinations, consolidation into a single set of regulatory guidelines, more efficient use of and movement of cash, more efficient management of investments and equity, improved ability to manage our loan loss reserve, much more efficient approach to managing loan participations to a larger single bank lending limit and a reduction in regulatory costs. Additionally, by combining the different banks into one charter with a single name, we can leverage our unified BlackRidgeBANK name.

When will this occur?

Our banks are complex, so the merger may take place in steps. Legally, the institutions have merged, and the names have changed. The merger of online banking, products, and other processing software is expected to be completed by the end of March 2012. We will work hard to keep you informed as we move forward.

What will happen to my account(s)?

There are only a few situations where the account numbers will need to be changed to avoid a processing complication associated with duplicate account numbers.

Will my account number change?

In most cases, no.

Will the ABA routing number change?

For customers of two banks within the BlackRidge organization the ABA routing number will change. We will have a single ABA routing number and will utilize the existing routing number of Lakewood Bank. This routing number is 091914286. BlackRidgeBANK will continue to own the other two routing numbers. Checks and electronic transfers will be rerouted through the new routing number. The other routing numbers will be phased out through attrition.

Will your bank name change?

The single name for all banks and offices within BlackRidge Financial will be BlackRidgeBANK.

Will I get new checks?

New checks will only be ordered for accounts where potential duplicate numbers exists between offices. You can continue to use your existing supply and your next reorder will reflect the new bank name and ABA routing number, if applicable.

Where do I send loan payments?

You can continue to send your payment to the same branch that you had sent them before.

Will I get a new debit card?

Not necessarily. Customers of Lakewood Bank and First State Bank of Alexandria will receive a new debit card with the BlackRidgeBANK name when their current debit card expires and is re-issued. The exception would be for those customers who may have a duplicate card account number. Those customers will receive a new debit card prior to the merger.

What will happen with FDIC insurance?

Following the merger, deposits from Lakewood Bank and FSB Alexandria will be separately insured from the deposits of BlackRidgeBANK for at least six months after the effective date of the merger. Certificates of Deposits (CDs) from Lakewood Bank and FSB Alexandria are separately insured until the earliest maturity date after the end of the six month period following the merger. CDs that mature during the six-month period and are renewed for the same term and in the same amount (either with or without interest) continue to be separately insured until the first maturity date after the six month period.

What will I see and how will I know the merger happens?

As part of the regulatory application process, we will publish notice of our application in a number of area newspapers and you may see that notice. Much of the work will then be behind the scenes. For those of our customers using our online banking or bill pay services, you will see changes in appearance and name but not execution. There will be no change of the operational aspects of your online banking or bill pay. We will continue to maintain the web address you presently use or you can change it to a new address we will provide to you.

What about the people at the bank that I know; will they change?

The employees of the bank will continue to serve you to the best of their abilities.

Can customers of the different bank use the other offices for their banking needs after the merger?

Yes. In fact that is an added benefit to the merger that may make your banking experience more convenient.

Will any offices close following the merger?

No.

Will my rates or fees change?

The rates paid on deposits and charged on loans as well as our fees will continue to be established by a local team led by your market president.