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FDIC APPROVES THE PAYOUT OF INSURED DEPOSITS OF NEXTBANK, NATIONAL ASSOCIATION, PHOENIX, ARIZONA

FOR IMMEDIATE RELEASE
PR-16-2002 (2-7-2002)
Media Contact:
David Barr (202) 898-6992

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of NextBank, National Association, Phoenix, Arizona. The bank was closed today by the Office of the Comptroller of the Currency, and the FDIC was named receiver.

NextBank, an Internet-only bank, had no brick-and-mortar branches. It solicited only certificates of deposit of $100,000 or more and had no checking or savings accounts. NextBank had total assets of $700 million and total deposits of $554 million, of which $29.4 million in 2,075 accounts exceeded the federal deposit insurance limit.

The FDIC received no bids for the bank's deposits. As a result, Monday morning the FDIC will mail checks to the customers of the failed bank for the amount of their insured deposits. Customers with more than $100,000 on deposit at the failed bank should contact the FDIC toll free at 1-877-367-2719 and ask to speak with a claims agent.

The FDIC is still in the process of evaluating the failed bank's assets. Until that process is complete, the FDIC will not be able to provide an estimated cost to the Bank Insurance Fund for the failure of NextBank.

NextBank is the fourth FDIC-insured bank to fail this year and the first in Arizona since Columbia Bank, Avondale, was closed on February 27, 1992.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,747 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars - insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov or through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).
Last Updated 02/07/2002 communications@fdic.gov