Cash Letter Services

Item Exchange Efficiency is Increasing
Correspondent customers using INTRUST cash letter services will see changes on their upcoming analysis statements. Per item charges will be streamlined into the following new categories:

• INTRUST items
• Peer to Correspondent Items
• Kansas City Image Exchange
• Other Fed Image Exchange
• Paper Items
• Foreign Items
• Collection Items

INTRUST continues to build relationships with banks and other financial institutions through peer-to-peer exchanges to clear items in the most efficient and cost-effective manner possible. The new categories reflect the efficiencies resulting from these exchanges. The best part is that correspondents using a peer-to-peer exchange can clear INTRUST items for FREE!

The American Banker magazine published an article featuring INTRUST in the January 8, 2009 issue. The article discusses INTRUST's use of Pointe2Pointe Internet connectivity to bridge the exchange of items with other institutions. This particular relationship facilitates the exchange of items with Fiserv, JPMorgan Chase, Wells Fargo, and several other financial institutions. This is just one of the many relationships INTRUST has established in order to provide our customers with the lowest possible operations fees.

INTRUST remains committed to continually improving processes and utilizing technology to provide our customers with high-level service at a competitive price.

Please contact the Correspondent Banking Department for more information or for a cost comparison with your current provider.

Sleep with One Eye Open
Just ask the farmers who sold their corn on contract to VeraSun Energy what counterparty risk is and they will tell you without hesitation it is the risk that the other party in an agreement will default on its contractual obligations. These same farmers saw their contracts shredded as VeraSun proceeded through bankruptcy while the value of their crop eroded by as much as 50% due to price fluctuations.

In virtually every sector of our economy, we are seeing the effects of extreme price volatility. In an attempt to counter this volatility, there has been a substantial increase in contracts written between various parties trying to capture high prices, lock in input prices and trying to maintain some kind of a "normal" profit margin. On the surface, this appears to be a very prudent business practice and most times, it works out that way. However, we are seeing more and more examples where price volatility has left someone in an undesirable position of not being able to fulfill their contractual obligations, sending a shock wave through the chain that touches more businesses than one might think. Unfortunately, in most cases the last business affected is typically the bank financing someone involved in the transaction. When this happens, we all find ourselves wondering where this came from and how it could possibly happen to us when we had underwritten the credit with solid 5 C's fundamentals (a borrower should have these key elements to obtain credit: character, capacity, capital, collateral, and conditions).

The challenging part of credit underwriting, during volatile economic times, is that the counterparty risks are often left unidentified. These risks do not show up on financial statements or any type of documentation that a borrower would typically submit to a lender. This is not to say that every risk can be identified or mitigated. However, an open discussion and a few simple questions between the lender and the borrower can bring some of these underlying risks to light and make both parties more aware of the ramifications of specific counterparty risks. Once a counterparty risk is identified, a series of "what if" questions will generally suffice to begin dissecting the risk and drill deeper into the issue and point out who might be affected and in what manner. This discussion should pave the way to an analysis of what the impact of a counterparty risk would be to the borrower's financial position as well as possible solutions to mitigate the risk.

As lenders, we are innately programmed to identify risks and attempt to mitigate them to the best of our abilities. By doing this, we often prevent our bank from suffering a loss or seeing our borrower go through unnecessary financial difficulty. Often this identification of risk is the way we add value to the relationship with our borrower. However, we also realize that there is no way to identify or mitigate every risk. That is why as lenders we sleep, but do so with one eye open.

INTRUST Bank offers Foreign Currency to our Correspondent Banks
Customer convenience is never tested more than when a need goes unfulfilled. One such test commonly occurs when a traveler seeks to buy or sell foreign currency through a local bank. We can help you anticipate this need and develop a convenient alternative for your customer.

INTRUST Bank offers a complete range of foreign exchange services. We maintain a substantial inventory of foreign currency to serve the majority of our correspondents' needs as well as foreign wires and drafts.

INTRUST Bank Buys and Sells Foreign Currency
The below currencies are available for purchase daily, additional currencies can be ordered. We recommend that travelers purchase currency in advance. Doing so will enable them to cover initial expenses such as taxi or train fare and other incidentals, and it will eliminate the inconvenience of waiting in line at the airport exchange window. We recommend that they carry as much cash as they would on a domestic trip.

Leftover currency from the trip? To redeem, call INTRUST Bank for the current exchange rate. Legal tender for the following currencies may be redeemed for immediate credit at our buy rate. Other currencies may be redeemed in accordance with sovereign guidelines and could be subject to a fee. Contact us for further information. Coins are not accepted, with the exception of the 1.00 and 2.00 Euro and Pound coins.

Contact us to learn more, or visit us online at intrustbank.com/international.

• INTRUST Bank International Banking: 316-383-1300
• Foreign Currency Teller: 316-383-1287

Get to know Molly Darrenkamp, Vice President — Portfolio Manager
Molly Darrenkamp grew up in the small town community of Beloit, Kansas. She graduated from Kansas State University with a degree in Accounting. Molly and her husband Scott have been married almost thirteen years. Scott recently made a career change to Real Estate. Prior to that, he was in the Banking industry for eighteen years as a Commercial Lender and former Bank Examiner. Molly and Scott have two small boys, Joshua and Jayson, age 4. The boys will start Kindergarten in the fall.

Molly has been with INTRUST Bank for over ten years. Prior to joining INTRUST Bank, she was a Financial Planner and a former Bank Examiner. Currently she is Vice President - Portfolio Manager in the Correspondent Banking department.

With two small children, Molly and Scott spend their free time with the family going to sporting events, riding bikes, and hanging out by the play gym.