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Bank Failures

Question and Answer Guide

First Bank of Idaho, Ketchum, ID

FDIC Call Center
Toll free number 1-800-591-2845
Hours of Operation - Mountain Time
Friday, April 24, 2009: Until 9:00 p.m.
Saturday, April 25, 2009: 9:00 a.m. - 6:00 p.m.
Sunday, April 26, 2009: Noon - 6:00 p.m.
Thereafter: 8:00 a.m. - 8:00 p.m.
Is My Account Fully Insured?: (closedbanks.fdic.gov/drrip/afi/Search)
Electronic Deposit Insurance Estimator: (edie.fdic.gov)

First Bank of Idaho, Ketchum, ID was closed Friday, April 24, 2009, by the Office of Thrift Supervision. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. The FDIC will transfer ALL deposits and certain assets of First Bank of Idaho, to U.S. Bank National Association (U.S. Bank), based in Minneapolis, MN. Please see the Office of Thrift Supervision press release for more information. Share price does not trigger a bank closing and was not the reason for this failure. According to regulatory policy, there is no advance notice given to the public.

The good news is that no one lost any deposits as a result of the closure of First Bank of Idaho. To protect depositors, the FDIC Board of Directors approved the assumption of ALL of First Bank of Idaho’s deposits by U.S. Bank, headquartered in Minneapolis, MN.

The total balance in your account(s) has been transferred to U.S. Bank, Minneapolis, MN and will be available for transactions during regular business hours at the former First Bank of Idaho branches.

You may continue to use your same checks and ATM/Debit cards until notified.

All direct deposits, including Social Security checks, will continue as usual.

Over $250,000: What if I have more than $250,000 in my accounts at First Bank of Idaho?

All deposit accounts have been transferred in their entirety to U.S. Bank, based in Minneapolis, MN. All former First Bank of Idaho offices will reopen for normal business hours on Monday, April 27th, as branches of U.S. Bank; however drive through at the Driggs, ID and Powder Horn, WY branches will be open for regular Saturday hours.

As an All-Deposit Transfer transaction, the total of all deposit accounts, whether within FDIC insurance limits or not, have been assumed by U.S. Bank and will be available for business as usual.


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Account Hold: I have been advised there is a hold on my account. What does that mean?

It is possible a depositor’s account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call your loan officer or the FDIC at the number provided in the letter.


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ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?

You will be able to continue using your personal checks at this time, and your ATM/Debit card will continue to work. The ATM machine will be unavailable for a short period of time on Friday for processing; however, it will be operational shortly after that is accomplished and will be available as usual.


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Automatic Payments/Online Billpay: Will my automatic payments through Billpay continue?

Billpay will be unavailable over the weekend; however, it will be available on Monday morning.


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Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits. What do I need to do?

Brokered deposits will be held by the FDIC, and those insured deposits will be paid off when the insurance determination is complete. The FDIC offers an online reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC’s policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts in a failed FDIC-insured institution. Please read the following Deposit Broker Processing Guide completely before contacting the FDIC with questions:

http://www.fdic.gov/deposit/deposits/brokers/index.html

Should you have any questions regarding the completion of required affidavits or declarations on behalf of your client, please call 1-800-591-2845 and indicate you have a form completion question.

If you are a customer who has a First Bank of Idaho deposit through a broker, you must contact your broker with any questions. Once the FDIC receives a balanced investor file along with all the required documentation, from your broker, your insured funds will be wired to them on your behalf.


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Checks not honored: A merchant will not honor my check. What can I do?

A copy of this document or the press release (www.fdic.gov/news/news/press/2009/pr09060.html) can be provided as both documents state all deposits have been transferred to U.S. Bank, and it is business as usual. Copies of this press release will be available at the former First Bank of Idaho branches. Depositors or merchants can also call the FDIC at 1-800-591-2845 or the former First Bank of Idaho branches.


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Claim Account(s): How do I claim my account(s)?

Your account(s) has already been transferred to U.S. Bank, and your account(s) will be handled as usual. Any withdrawal, renewal or additional deposits will “claim” your account. Please be advised that if there is no activity in your account in the next 18 months, that money will be turned over to your state as unclaimed property in accordance with state law. Unclaimed property can be located by visiting www.missingmoney.com or contacting your states treasurer’s office or office of unclaimed property.


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Customer Impact: How does this failure affect me?

All deposits (both insured and uninsured) of First Bank of Idaho have been transferred to U.S. Bank, and it will be business as usual. If you held an account at First Bank of Idaho, you now have an account at U.S. Bank that is available to you at your former First Bank of Idaho branches during regular business hours.

If you had a loan with First Bank of Idaho, please continue to make your payments to the same address as you have in the past until you are instructed otherwise. Continue to make your checks payable to First Bank of Idaho.

The former First Bank of Idaho locations will reopen for normal business hours on Monday, April 27th. You will have continued access to your money through your ATM/debit card and by writing checks.

Customers of both banks should continue to use their existing branches until U.S. Bank can fully integrate the deposit records of First Bank of Idaho.


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Deposits Existing at U.S. 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 transferred accounts will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure his or her accounts, if necessary.

CDs from the assumed 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.


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Direct Deposits, Social Security: What will happen to my direct deposits?

Direct Deposits will continue as normal, including Social Security checks. If you need to change anything in the future, please contact or visit your former First Bank of Idaho branch location to make those arrangements.


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Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?

No. 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.


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Final Statement: When will I get my final account statement(s) from First Bank of Idaho?

You will receive your account statements at the same time you have received them in the past.


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nterest: Will I continue to earn interest at the same rate?

All interest accrued through Friday, April 24, 2009, will be paid at your same rate. U.S. Bank will be reviewing rates and will provide further information soon.

If you deposited funds through a broker, the interest will accrue and be paid through Friday, April 24, 2009.


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Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?

Interest checks and cashier's checks will continue to clear.


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Internet Connection: Will my Internet connection to First Bank of Idaho work?

The bank website will be available for regular transactions on Monday, April 27th.


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IRAs: What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?

All deposits, including IRAs have been transferred in their entirety to U.S. Bank. IRA funds are insured separately from other types of accounts up to $250,000.

If you close your IRA before maturity, you have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.


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Lose Any Money: Will I lose anything on my deposit account?

No. All accounts have been transferred in their entirety to U.S. Bank and will be available starting on Monday, April 27th.


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Outstanding Checks: What will happen to the checks which have not cleared my account?

Checks drawn on First Bank of Idaho that did not clear before Friday, April 24, 2009, will be honored up to your available balance.


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Records/Account Histories: What if I need information regarding my account during the time First Bank of Idaho was in business?

Please contact a representative of your new bank at your former First Bank of Idaho branch location to obtain a copy of any records you may need or visit your branch.


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Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?

U.S. Bank will be responsible for mailing your 1099 tax information. Your 1098 reporting will be done by the FDIC or the servicer of your loan. You will be notified of any changes in ownership or servicing of your loan.


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Uninsured: Will I collect my uninsured deposits?

All deposits have been transferred in their entirety to U.S. Bank; therefore, you have received your deposits in full.


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Wire Transfer: Can funds be wired to me?

Please contact your former First Bank of Idaho branch location to obtain information regarding your wire request.


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Automatic Payments: Will my automatic payment still occur on its assigned date?

You should experience no disruption in this service. We encourage you to check your bank account the day after your scheduled draft to verify the transaction. If the transaction did not occur, please notify your loan officer to research your loan.


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Construction Loan Draws: Will construction draws continue? Will my project be completed?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer.


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Construction Loan Voucher Control: Will my subcontractors be paid as before?

Each loan is being reviewed independently and will be determined on a case-by-case basis. You should direct your questions to your loan officer.


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Escrows: Will you continue to pay my escrows?

All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please notify your loan officer immediately.


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Fees: Are there any changes to fees or charges due to this event?

No. The current fee structure will remain the same.


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Foreclosures: Will the FDIC continue foreclosures in process?

At this point, all foreclosure actions have been suspended in order to properly evaluate the loans and the borrower's ability to repay. It is our intention to sell all loans, and it will be up to the new owner to determine the best method of collection on the loan. There may be instances where FDIC will continue with the foreclosure process, but this will be done on a case-by-case basis.


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Lender and contact names: Who is my lender and has my loan contact changed?

Your loan is currently owned by the FDIC and is being serviced by all of the same personnel with whom you have worked in the past. All prior contacts remain the same.


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Loan Sales: Will my loan be sold?

Your loan may be sold at a future undetermined date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer will be, you have the right to independently refinance your loan with another lender.


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Line of Credit Advances – Home Equity: Can I continue to perform advances on my line of credit?

All lines of credit, including Home Equity Lines of Credit (HELOCs), have been suspended at this time and have been retained by the FDIC. You may contact U.S. Bank to discuss establishing a borrowing relationship.


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Loan in Process: I have a loan currently in process. How is my loan impacted?

Please contact your loan officer directly.


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Loan Sweeps: Will my loan sweep be discontinued?

This will be determined on a case-by-case basis. Please contact your loan officer.


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Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?

Yes. These lines have been transferred to U.S. Bank. Please contact your new bank if you have additional questions regarding your accounts.


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Payments: How and where do I make my payments?

You should continue to make your payments as agreed. Make checks payable to First Bank of Idaho and utilize the same payment address information. You may continue to make your payments at the branch or by phone via check or credit card.


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Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?

Any pre-payment penalty will be waived as long as FDIC as Receiver for First Bank of Idaho has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.


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SBA Application in Process: What will happen to my SBA loan application in process?

The FDIC as Receiver for First Bank of Idaho will not be originating any new loans.

If your loan has been approved by the SBA, but is not yet funded, please contact your loan officer. He will direct you to the proper SBA contact to help you locate another approved lender.

If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you, and you will need to apply with another SBA-approved lender. Please contact your loan officer to make arrangements to retrieve your application from the bank.


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What Happens Now: What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan. Your loan may be sold at a future undetermined date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about who your future lender or servicer may be, you have the right to independently refinance your loan with another lender.


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All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured and uninsured, pass is 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 is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC is only able to transfer all deposits if the uninsured amounts are covered by the premium. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.


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FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?

You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE):

Deposit Insurance: (www.fdic.gov/deposit/index.html)
Are my deposits insured?: (www.fdic.gov/deposit/deposits/index.html)
EDIE: (https://edie.fdic.gov/)

You may also order any FDIC publication:

FDIC Public Information Center
3501 North Fairfax Drive
Room E-1002
Arlington, VA 22226
703-562-2200 Phone
703-562-2296 Fax
publicinfo@fdic.gov


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

David Barr
202-898-6992
dbarr@fdic.gov


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New Bank Insured: Is the new bank insured by the FDIC?

Yes. Your deposit at U.S. Bank is insured by the FDIC, and each depositor is insured to at least $250,000, as established by law.


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

It is business as usual. You may go to your branch and access your safe deposit box or make appointments by calling your former First Bank of Idaho branch location.


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Shareholders: I am a shareholder. What happens to my shares?

The First Bank of Idaho had no publicly owned stock. Equity shareholders were invested in the holding company, Sun Valley Bancorp, Ketchum, ID, and not in the bank. Please do not file a claim with the Receiver, rather contact the holding company with any questions you may have:

Sun Valley Bancorp
111 Main Street
Ketchum, ID 83340


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Unpaid Bill: I did some work for First Bank of Idaho and have not yet been paid. What should I do?

Please send your bills to the following address:

FDIC as Receiver for First Bank of Idaho
1601 N. Bryan Street
Dallas, TX 75201-3430
Attention: Claims Agent


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Last Updated: July 16, 2019