Each depositor insured to at least $250,000 per insured bank

Question and Answer Guide

The La Coste National Bank, La Coste, TX

En Español

FDIC Call Center
Toll free number 1-800-830-3256
Hours of Operation – Central Standard Time
Friday, February 19, 2010:   Until 9:00 p.m.
Saturday, February 20, 2010:   9:00 a.m. – 6:00 p.m.
Sunday, February 21, 2010:   Noon – 6:00 p.m.
Thereafter:   8:00 a.m. – 8:00 p.m.


On Friday, February 19, 2010, The La Coste National Bank, La Coste, TX, was closed by the Office of the Comptroller of the Currency. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, Community National Bank, Hondo, TX acquired substantially all the deposits and assets of The La Coste National Bank from the FDIC as Receiver for The La Coste National Bank. Any claims by equity holders were not acquired.

The total balance in your account(s) has been transferred to Community National Bank and will be available for transactions during regular business hours at The La Coste National Bank's former branch.

You may continue to use your same checks, ATM cards and debit cards until notified.

All Direct Deposits, including Social Security checks, will continue as usual.

Account(s): What about my account with The La Coste National Bank?

If you had an account with The La Coste National Bank, you now have an account with Community National Bank, Hondo, TX. All deposit accounts, which include checking, savings, money market, CDs and retirement accounts, have been transferred to Community National Bank, regardless of the dollar amount. No one lost any money on deposit in The La Coste National Bank.

Customers of both banks should continue to use their existing branches until Community National Bank can fully integrate the deposit records of The La Coste National Bank.

To forewarn you of any scams, please be advised that you will not receive any notification from the FDIC, the Receiver, or Community National Bank to provide private information. Please be watchful for and resist any such scams to obtain information from you by individuals or entities purporting to act on behalf of The La Coste National Bank, Community National Bank, or the FDIC.

Back to top

ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with The La Coste National Bank?

Your ATM/debit card will continue to work, and bill paying will work as it has in the past.

Back to top

Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?

The La Coste National Bank did not have brokered deposits. If you have an account with The La Coste National Bank that was placed by a deposit broker, you must contact your broker with any questions.

Back to top

Direct Deposits - Government Deposits: What will happen to my direct deposits?

Direct Deposits, including Social Security checks, will continue as normal.

Back to top

Existing Deposits at Community National Bank: I already have other deposit accounts with the new bank.  When combined with balances at this bank, my deposits exceed $250,000.  Are all funds insured?

The accounts transferred to Community National Bank will be separately insured for at least six months after the merger.  This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Back to top

Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

Interest on all deposits accrued through Friday, February 19, 2010, will be paid at your same rate. Community National Bank will review rates and notify you if interest rates will change. Your interest rate may be reduced.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to or a withdrawal from your account.

Back to top

Loans/mortgages: What about my loan or mortgage with The La Coste National Bank?

All mortgages and loans have been assumed by Community National Bank.  Your payment amount and due date are the same.  If you are having your payment deducted from your account, it will continue as it has in the past.  You should continue to make your checks payable to The La Coste National Bank and send your payments to the same address.

Back to top

Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer.  All prior contacts remain the same.

Back to top

Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

Greg Hernandez
1-202-898-6984
ghernandez@fdic.gov
Back to top

Outstanding Checks: What about checks that I have written on my account with The La Coste National Bank?

Your checks will clear up to the available balance in your account.  You can continue to use your existing checks.

Back to top

Safe Deposit Boxes: How can I claim the contents of my safe deposit box?

It is business as usual.  You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.

Back to top

Shareholders: What about my shares of stock?

Shareholders have a claim against the receivership; however, they have the lowest priority of claim. You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes. The FDIC does not require stockholders to file a claim with the Receiver. However, we recommend that you keep our office informed of any address change, should we need to contact you in the future.

Back to top

Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result had been for the FDIC to transfer only the insured deposits in a Purchase and Assumption transaction; however, the temporary increase in the deposit insurance limit has assisted in the transfer of all deposits more often in the past year.

Back to top

Unpaid Bills: I did some work for the bank and have not been paid. What should I do?

All claims against The La Coste National Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:

Federal Deposit Insurance Corporation
Receiver: The La Coste National Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent
Back to top



Last Updated 08/24/2012 cservicefdicdal@fdic.gov