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The FDIC Took Over 7 Banks on December 18th

The FDIC Took Over 7 Banks on December 18th by STAFF WRITER
Published December 19, 2009
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The Federal Deposit Insurance Corporation (FDIC) took over 7 banks on Friday, December 18, 2009. These closings bring the total for the year to 140. The banks include First Federal Bank of California, Santa Monica, California, Imperial Capital Bank, La Jolla, California, Independent Bankers Bank, Springfield, Illinois, New South Federal Savings Bank, Irondale, Alabama, Citizens State Bank, New Baltimore, Michigan, and Peoples First Community Bank, Panama City, Florida. Details for each bank are included below for customers:

First Federal Bank of California, Santa Monica, California

First Federal Bank of California, a Federal Savings Bank, Santa Monica, California, was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with OneWest Bank, FSB, Pasadena, California, to assume all of the deposits of First Federal Bank of California. The 39 branches of First Federal Bank of California will reopen on Saturday as branches of OneWest Bank, FSB. Depositors of First Federal Bank of California will automatically become depositors of OneWest Bank, FSB. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until OneWest Bank, FSB can fully integrate the deposit records of First Federal Bank of California.

Imperial Capital Bank, La Jolla, California

Imperial Capital Bank, La Jolla, California, was closed today by the California Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with City National Bank, Los Angeles, California, to assume all of the deposits of Imperial Capital Bank. The nine branches of Imperial Capital Bank will reopen during normal business hours on Monday as branches of City National Bank. Depositors of Imperial Capital Bank will automatically become depositors of City National Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from City National Bank that it has completed systems changes to allow other City National Bank branches to process their accounts as well.

Independent Bankers Bank, Springfield, Illinois

The FDIC created a bridge bank to take over the operations of Independent Bankers' Bank, Springfield, Illinois, after the bank was closed today by the Illinois Department of Financial and Professional Regulation-Division of Banking, which appointed the FDIC as receiver. The newly created bank is Independent Bankers' Bank Bridge Bank, National Association. Independent Bankers' Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks.

New South Federal Savings Bank, Irondale, Alabama

New South Federal Savings Bank, Irondale, Alabama, was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Beal Bank, Plano, Texas, to assume all of the deposits of New South Federal Savings Bank. The sole branch of New South Federal Savings Bank will reopen on Monday as a branch of Beal Bank. Depositors of New South Federal Savings Bank will automatically become depositors of Beal Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Beal Bank that it has completed systems changes to allow other Beal Bank branches to process their accounts as well.

Citizens State Bank, New Baltimore, Michigan

Citizens State Bank, New Baltimore, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which then appointed the FDIC as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of New Baltimore (DINB), which will remain open for approximately 45 days to allow depositors access to their insured deposits and time to open accounts at other insured institutions. At the time of closing, the receiver immediately transferred to the DINB all insured savings, checking, and secured public units of Citizens State Bank. Certificates of deposit (CDs) and Individual Retirement Accounts (IRAs) were not transferred over to the DINB. The FDIC will mail checks directly to deposit customers who had CDs and IRAs with Citizens State Bank.

Peoples First Community Bank, Panama City, Florida

Peoples First Community Bank, Panama City, Florida, was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Hancock Bank, Gulfport, Mississippi, to assume all of the deposits of Peoples First Community Bank. The 29 branches of Peoples First Community Bank will reopen during normal business hours beginning Saturday as branches of Hancock Bank. Depositors of Peoples First Community Bank will automatically become depositors of Hancock Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Hancock Bank that it has completed systems changes to allow other Hancock Bank branches to process their accounts as well.

RockBridge Commercial Bank, Atlanta, Georgia

The FDIC approved the payout of the insured deposits of RockBridge Commercial Bank, Atlanta, Georgia. The bank was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. The FDIC was unable to find another financial institution to take over the banking operations of RockBridge Commercial Bank. As a result, checks to the retail depositors for their insured funds will be mailed on Monday. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. Customers who placed money with brokers should contact them directly for more information about the status of their funds.

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