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Failed Bank Information
Question and Answer Sheet for First Heritage Bank, N.A., Newport Beach, CA
Customer Service: Newport Beach 949-863-9780
Customer Service: Los Angeles 213-628-4500
FDIC Call Center: 866-674-8944   
En Español

The following answers are provided to the most commonly asked questions by customers of the failed bank. The total balance in your account(s) will be transferred to Mutual of Omaha Bank, Omaha, Nebraska and will be available for transactions during regular business hours.

Please access our FDIC website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE).

  1. Over $100,000   What if I have more than $100,000 in my accounts at First Heritage Bank?
  2. What Happened?  What happened, why did the bank fail?
  3. Customer Impact  How does this action affect me?
  4. Claim Account(s)  How do I claim my account(s)?
  5. ATM/Debit Card   Can I continue to write checks or use my ATM/Debit card?
  6. Final Statement   How will I get my final account statement(s) from First Heritage Bank?
  7. Interest   Will I continue to earn interest at the same rate?
  8. Internet Connection   Will my internet connection to First Heritage Bank still work?
  9. IRAs   What if I have an Individual Retirement Account (IRA)?  Will my savings still be insured?
  10. Wire Transfer   Can funds be wired to me?
  11. Interest Check/Cashier's Checks  Can I cash my interest check or cashier's check?
  12. Records/Account Histories   What if I need information regarding my account during the time First Heritage Bank was in business?
  13. Direct Deposits - Government Deposits  What will happen to my direct deposits?
  14. Automatic Payments/Online Billpay   Will my automatic payments through online Billpay continue?
  15. Outstanding Checks   What will happen to the checks which have not cleared my account?
  16. Loans   How do I make my loan payments?
  17. FDIC Insurance  How can I find out more about Federal Deposit Insurance rules?
  18. Safe Deposit Boxes   How can I claim the contents of my safe deposit box?
  19. Unpaid Bill   I did some work for First Heritage Bank and have not yet been paid.  What should I do?
  20. Deposit Broker/Brokered Deposits   I am a deposit broker or I have a deposit through a broker.  What do I need to do?
  21. Tax Reporting - 1098/1099s   Who will send my 1098 and/or 1099 information after the end of the year?
  22. Media   I represent a TV/Newspaper/Radio and would like some information.
  23. New Bank Insured   Is the new bank insured by the FDIC?
  24. Deposits Existing at Mutual of Omaha Bank   I already have other deposit accounts with the new bank.   When combined with the balances at this bank, my deposits exceed $100,000.   Are all of my funds at both banks insured?
  25. Checks not Honored  A merchant will not honor my check.  What can I do?
  26. Early Withdrawal Penalty   Will I incur an early withdrawal penalty if I close my CD before maturity?
  27. Account Hold   I have been advised there is a hold on my account.  What does that mean?
  28. HOA Accounts   I am a participant in a Home Owners Association that had an account at First Heritage Bank.   How is the account insured?
  29. Loans in Process   What happens if I had a loan in process that had not closed or a line of credit that was not fully funded?
  30. All Deposit Transfer versus IndyMac Insured Deposit Transfer   Why did all deposits pass in this transaction but not in the IndyMac transaction?
1.  What if I have more than $100,000 in my accounts at First Heritage Bank?

All deposit accounts have been transferred to Mutual of Omaha Bank. The bank will reopen for business on Monday, July 28, 2008, as a branch of Mutual of Omaha Bank.

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2.  What happened?  Why did the bank fail?

First Heritage Bank, Newport Beach, California was closed Friday, July 25, 2008, by the Office of the Comptroller of the Currency (OCC). Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public. Please see the OCC press release for more information. The good news is that no one lost any deposit money as a result of the closure of First Heritage Bank. To protect depositors, the FDIC Board of Directors approved the assumption of First Heritage Bank's deposits by Mutual of Omaha Bank, Omaha, Nebraska.

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3.  How does this action affect me?

All deposits of First Heritage Bank have been transferred to Mutual of Omaha Bank, and will be business as usual. If you held an account at First Heritage Bank, you now have an account at Mutual of Omaha Bank.

If you had a loan with the bank, please continue to make your payments to the same address as you have in the past until you are instructed otherwise.

The former First Heritage Bank location will reopen Monday, July 28, 2008, as a branch of Mutual of Omaha Bank. Please note you will have continued access to your money through your ATM/Debit card and by writing checks.

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4.  How do I claim my account(s)?

Your account(s) has already been transferred to Mutual of Omaha Bank, and your account 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 escheated to your state.

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5.  Can I continue to write checks or use my ATM/Debit card?
You can continue using your personal checks at this time, and your ATM/Debit card will continue to work.
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6.  How will I get my final account statement(s) from First Heritage Bank?
You will receive your account statements at the same time you have received them in the past.
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7.   Will I continue to earn interest at the same rate?
All interest accrued through Friday, July 25, 2008 will be paid at the same rate. Mutual of Omaha Bank will be reviewing rates and will provide further information soon.
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8.   Will my Internet connection to First Heritage Bank still work?
Yes, it will be business as usual.
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9.   What if I have an Individual Retirement Account (IRA)?  Will my savings still be insured?
Yes.  All deposits, including IRAs transferred in their entirety to Mutual of Omaha Bank.  IRA funds are insured separately from other types of accounts up to $250,000.
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10.  Can funds be wired to me?
Please contact Mutual of Omaha Bank at 949-863-9780 in Newport Beach or 213-628-4500 in Los Angeles to obtain information regarding your wire request. The bank will be open at 9:00 AM on Monday morning.
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11.  Can I cash my interest check or cashier's check?
Interest checks and cashier's checks will continue to clear.
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12.   What if I need information regarding my account during the time First Heritage Bank was in business?
All deposit account histories and records are in the process of being passed to Mutual of Omaha Bank. Please contact a representative of the Mutual of Omaha Bank at 949-863-9780 in Newport Beach or 213-628-4500 in Los Angeles to obtain a copy of any records you may need.
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13.  What will happen to my direct deposits?
Direct Deposits will continue as normal.  If you need to change anything in the future, please contact the Mutual of Omaha Bank to make those arrangements.
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14.   Will my automatic payments through online Billpay continue?
Yes, these will continue as usual.
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15.  What will happen to the checks which have not cleared my account?
Checks drawn on First Heritage Bank that did not clear before the institution closed will be honored.
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16.   How do I make my loan payments?
Please continue to make your payments to the same address as you have in the past until you are instructed otherwise.  You will be notified by mail of any changes.
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17.  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
Are my deposits insured?
EDIE

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18.  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 during normal business hours or make an appointment by calling Mutual of Omaha Bank at 949-863-9780 in Newport Beach and 213-628-4500 in Los Angeles.
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19.  I did some work for First Heritage Bank and have not yet been paid.  What should I do?
Please mail a statement to:
FDIC as Receiver for First Heritage Bank, N.A.
1601 Bryan Street
Dallas, TX 75201
Attn: Claims Department
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20.  I am a deposit broker or I have a deposit through a broker.  What do I need to do?
All deposits have passed to Mutual of Omaha Bank. You should contact Mutual of Omaha Bank for any future changes or agreements.
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21.  Who will send my 1098 and/or 1099 information after the end of the year?
Mutual of Omaha 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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22.   I represent a TV/Newspaper/Radio and would like some information.
Please contact David Barr with the Office of Public Affairs at 202-898-6992 or Andrew Gray with the Office of Public Affairs at 202-898-7192 or 202-494-1049.
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23.  Is the new bank insured by the FDIC?
Yes.  Your deposit at Mutual of Omaha Bank is insured by the FDIC, and each depositor is insured to at least $100,000, as established by law.
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24.  I already have other deposit accounts with the new bank. When combined with the balances at this bank, my deposits exceed $100,000. Are all of my funds at both banks insured?

When two or more insured banks merge, the deposits from the assumed bank continue to be insured separately 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.

For additional information, you may access the FDIC website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE).

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25.   A merchant will not honor my check.  What can I do?
A copy of this document or the press release can be provided as it states 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 866-674-8944.
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26.  Will I incur an early withdrawal penalty if I close my CD before maturity?
You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with the Mutual of Omaha Bank by either making a deposit to or a withdrawal from your account, provided the deposits are not pledged as collateral for loans.
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27.   I have been advised there is a hold on my account.  What does that mean?
Holds will be placed if your account has been pledged as collateral for a loan.
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28.   I am a participant in a Home Owners Association that had an account at First Heritage Bank.  How is the account insured?
All deposits were transferred to Mutual of Omaha Bank, including Home Owners' Associations, and the entire balances are available for transactions. For future reference, FDIC insurance rules consider Home Owners’ Associations as one depositor for deposit insurance purposes and are insured up to $100,000.
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29.   What happens if I had a loan in process that had not closed or a line of credit that was not fully funded?
You should contact the FDIC at the Newport Beach location to discuss this matter.
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30.   Why did all deposits pass in this transaction but not in the IndyMac transaction?

In the case of IndyMac, there were no bidders for the bank. We generally offer both options of purchasing all deposits or insured deposits only, but the premium submitted by the bidders must be sufficient to cover the losses for the uninsured. Generally, bidders do not offer a high enough premium. This year, there were two other failures where the winning bank took all the deposits. Those failures were Douglass National Bank in Kansas City, MO and First Integrity Bank in Staples, MN.

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Last Updated 08/16/2012 Customer Service