The following questions and answers represent the most commonly asked questions
by customers of a failed institution. If the balance in your interest-bearing
account(s) (this includes any accounts in which you have an ownership) is less
than $250,000, or if your deposit is in a non-interest bearing transaction account(s),
no action is required on your part at this time. Your insured account(s) will
be transferred to First California Bank and will be available for business as
usual during regular business hours.
What if I have more than $250,000 in my accounts at 1st Centennial Bank?
If you have more than $250,000 in your interest-bearing account, or if the
total of your related interest-bearing accounts exceeds $250,000, your accounts
may require review by an FDIC Claim Agent. You should call the FDIC to schedule
a telephone appointment with an FDIC claim Agent at 1-800-822-1918.
If you have an interest-bearing account or group of interest-bearing accounts
that exceeds $250,000, you may need to complete certain declarations or affidavits
and provide documentation so that the FDIC can make an insurance determination
on your account(s).
If you are an investor with a deposit broker, you may need to complete one of
these forms only if your investment exceeds $250,000. However, you must mail
your form to your deposit broker for submission to the FDIC.
If your deposits DO NOT exceed $250,000, or if your deposits are in a non-interest
bearing transaction account(s), you DO NOT need to complete these documents
or contact the FDIC.
An account hold may be placed on an account due to the need for additional
documentation from a depositor. For example, a Declaration for Trust form may
to attest to the parties involved in a trust. These forms can be mailed to
you, or you can access them online at:
If you have a question regarding the completion of required affidavits or declarations,
please call 1-800-822-1918
and indicate you have a form completion question.
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.
Another reason an account hold may be placed is due to the need for additional
documentation from a depositor. For example, a Declaration for Trust form
may be required to attest to the parties involved in the trust. Please contact
the FDIC at 1-800-822-1918 to schedule a telephone appointment.
Is there a method to verify whether my account(s) at 1st Centennial
Bank are fully insured?
A tool, Is My Account Fully
Insured? (https://www2.fdic.gov/drrip/afi/index.asp), is available that allows failed bank
customers the ability to verify whether their account is fully insured or if
they need to contact the FDIC. This service will be available for use
no later than the first business day after the bank's failure. Once
you enter your account number, your insurance status for that account will
appear. If there is a hold on your account, it may be due to the need
for the additional documentation referenced in question
number one. If there is a hold, you will need to contact the FDIC at
1-800-822-9247 to schedule a telephone appointment.
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
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:
Should you have any questions regarding the completion of required affidavits
or declarations on behalf of your client, please call 1-800-822-1918 and
indicate you have a form completion question.
If you are a customer who has a 1st Centennial Bank 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.
A merchant will not honor my check. What can I do?
A copy of this document or the press
provided as both documents state insured deposits have been
transferred, and it is business as usual. Copies of this
press release will be available
at the bank. Depositors or merchants can also call the FDIC
at 1-800-822-1918 or your new bank at your former 1st
Centennial Bank branch location.
A deposit insurance payment of your account(s) up to the insured limit
has already been transferred, and your account(s) will be handled as usual.
Any withdrawal, renewal or additional deposits will “claim” your
account(s). Please be advised that if there is no activity in your account
in the next 18 months, that money will be escheated to your state. Unclaimed
property can be located by visiting www.missingmoney.com or contacting
your state’s treasurer’s office or office of unclaimed property.
The effect of the failure on the average depositor of 1st Centennial
Bank will be minimal, as the FDIC transferred the insured deposits and certain
assets to First California Bank. If you held an account at 1st Centennial
Bank, you now have an account at First California Bank.
The former 1st Centennial Bank locations will reopen on Monday,
January 26, 2009 as branches of First California Bank. You will
have continued access to your money through your ATM/debit card and by
Can 1st Centennial Bank customers use First California Bank
Please note you will not be able to transact business at existing
First California Bank branches until you are notified. Existing
customers of First California Bank will not be able to transact
business at these former 1st Centennial Bank branches until
you are notified.
If the balance in your interest bearing account(s)
(this includes any accounts in which you have an ownership)
is less than $250,000,
or if your deposits are in a non-interest bearing transaction
account(s), no action is required on your part at this time.
Your entire account(s) will be transferred and will be available
for business as usual during regular business hours at the
former 1st Centennial Bank branches.
If you have more than $250,000 in your interest bearing account (or $250,000
in your IRA), or if the total of your related interest bearing accounts exceeds
$250,000, your accounts may require review by an FDIC Claim Agent. All accounts
that appear to be related are reviewed to determine ownership and insurance coverage.
Certain entitlements and different types of accounts can be insured in excess
of the $250,000. If you think you might have uninsured deposits, please see question
number one for information regarding forms you may need to complete to expedite
If you had a loan with the bank, continue to make your checks payable to 1st
Centennial Bank and mail to the same address you have used in the past until
you are instructed otherwise.
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
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.
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 1st Centennial Bank branch location to make those arrangements.
Will I incur an early withdrawal penalty if I close my CD before
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.
Interest checks and cashier's checks will continue to clear. Official
checks (those issued by institutions – for example, cashiers’ checks,
certified checks, money orders) meet the definition of non-interest bearing
transaction accounts. Under the Temporary Liquidity Guarantee Program,
non-interest bearing transaction accounts are fully insured.
Will my Internet connection to 1st Centennial Bank work?
Over the weekend, the website will not be available.
Online transactional service is expected to resume on Monday morning.
1st Centennial Bank had a number of avenues for customers to access
funds, and each of
those avenues will be available when final processing is completed.
What if I have an Individual Retirement Account (IRA)? Will my savings
still be insured?
Yes. IRA funds are insured separately from other types of accounts up
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.
Principal and interest on insured accounts, through Friday, January 23,
2009, are protected by the FDIC, to at least $250,000. All transferred
deposits are insured to at least $250,000. Certain entitlements and different
types of deposits can be insured in excess of the $250,000.
If you have more than $250,000 in your interest bearing account (or $250,000
in your IRA), or if the total of your related interest bearing accounts
exceeds $250,000, your accounts may require review by an FDIC Claim Agent.
All accounts that appear to be related are reviewed to determine ownership
and insurance coverage. See question number one for information regarding
forms you may need to complete to expedite this process.
Who will send my 1098 and/or 1099 information after the end of the
First California 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.
If you have a loan in the same name as your uninsured deposit account, it may be possible to offset your uninsured amount
against your loan. You should discuss this with your claim agent during your appointment.
If it is determined that you have some uninsured funds, the FDIC will mail you a Receivership Certificate.
This certificate entitles you to share proportionately in any funds recovered through the sale of the assets of 1st
Centennial Bank. You may eventually recover more of your uninsured funds as assets are liquidated.
When a financial institution is closed, and the Federal Deposit Insurance Corporation
("FDIC") is appointed as receiver,
one of FDIC's responsibilities is to sell the institution's assets to pay the
depositors and its creditors. The money generated by the sale of these assets
will flow through the Receivership, and periodic dividend payments will be made
to proven claimants when excess cash is available. For an explanation of the
go to FDIC Dividends from Failed
Of course, you will receive immediate full payment for your insured
transfer to First California Bank.
If you have a deposit through a broker, your insured funds will be wired to your
broker on your behalf once the FDIC receives all required documentation from
Will my automatic transaction payment still occur on its assigned
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 and we will research your loan.
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.
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.
Can I continue to perform advances on my personal line of credit?
All Home Equity Lines of Credit (HELOCs) have been suspended at this time and have been retained by the FDIC. Additional funding needs will be evaluated on a case-by-case basis; however, you are encouraged to seek refinancing elsewhere.
If I refinance with another lender, will my pre-payment penalty be
Any pre-payment penalty will be waived as long as FDIC as Receiver for
1st Centennial Bank has control of the asset, and the borrower
obtains refinancing of the outstanding balance on the account
with another financial institution.
What will happen to my SBA loan application in process?
The FDIC as Receiver for 1st Centennial Bank will not be originating any
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.
Each loan is currently being reviewed independently to determine the best
action for that individual loan. If you are concerned about whom your future
lender or servicer may be, you have the right to independently refinance
your loan with another lender.
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 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.
The 1st Centennial Bank had no publicly owned stock. Equity shareholders
were invested in the holding company, 1st Centennial Bancorp, and not in
the bank. Please contact the holding company with any questions you may have:
1st Centennial Bancorp
218 E. State Street
Redlands, CA 92373
1st Centennial Bank, Redlands, CA was closed Friday, January 23, 2009,
by the California Department of Financial Institutions (DFI).
Subsequently, the Federal Deposit Insurance Corporation (FDIC)
was named Receiver. The
FDIC will transfer insured deposits and certain assets of 1st
Centennial Bank, to First California Bank, based in Westlake
Village, CA. See the DFI Press
Release for further information. According to regulatory policy,
there is no advance notice given to the public.
The good news is that no one lost any insured deposit money
as a result of the closure of 1st Centennial Bank. To protect depositors,
the FDIC Board of Directors approved the assumption of 1st Centennial Bank’s
insured deposits by First California Bank.
How can I apply to work for FDIC as a contractor or
You may access information about doing business with
the FDIC at Procurement
You must also register in the Central Contractor Registration database
at www.ccr.gov. Entry into the database is not a guarantee that a contractor
will receive a future solicitation.
You may also call 1-866-308-4470 for more information or send
an email to ProcurementOpportunities@fdic.gov.
Please include a statement of your corporate capabilities,
contact information and Minority or Women-Owned Business (MWOB)
status, if any.
To review positions currently available at the FDIC, visit Careers
at FDIC (www.fdic.gov/about/jobs/index.html).