Question and Answer Guide
Hillcrest Bank Florida, Naples, FL
FDIC Call Center
Toll free number 1-800-517-1846
Hours of Operation – Eastern Time
Friday, October 23, 2009: Until 8:00 p.m.
Saturday, October 24, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, October 25, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
Electronic Deposit Insurance Estimator (www.myfdicinsurance.gov)
On Friday, October 23, 2009, Hillcrest Bank Florida, Naples, FL was closed Friday by the Florida Office of Financial Regulation. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed Receiver. According to regulatory policy, there is no advance notice given to the public.
No one lost any deposits as a result of the closure of Hillcrest Bank Florida. To protect depositors, the FDIC Board of Directors approved the assumption of ALL of Hillcrest Bank Florida’s deposits by Stonegate Bank, Fort Lauderdale, FL.
The total balance in your account has been transferred to Stonegate Bank and will be available for transactions during regular business hours at the former Hillcrest Bank Florida branches starting on Monday, October 26, 2009.
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.
To forewarn you of any scams, please be advised that you will not receive any e-mail notification from the FDIC, the Receiver, or Stonegate Bank to claim/unlock/unsuspend your account or to provide any 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 Hillcrest Bank Florida or the FDIC.
- Over $250,000: What if I have more than $250,000 in my accounts at Hillcrest Bank Florida?
- Account Hold: I have been advised there is a hold on my account. What does that mean?
- ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?
- Automatic Payments/Online Bill Pay: Will my automatic Bill Pay payments continue?
- Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits.
- Checks not honored: A merchant will not honor my check. What can I do?
- Claim Account(s): How do I claim my account(s)?
- Customer Impact: How does this action affect me?
- Account Insurance Status: Is my account fully insured?
- Direct Deposits, Social Security: What will happen to my direct deposits?
- Early withdrawal penalty: Will I incur an early withdrawal penalty on my CD?
- Final Statement: How will I get my final statement(s) from Hillcrest Bank Florida?
- Interest: Will I be paid interest at the same rate?
- Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?
- Internet Connection: Will online banking work?
- IRAs: What if I have an Individual Retirement Account (IRA)? Is my IRA insured?
- Lose Any Money?: Will I lose anything on my deposit account?
- Outstanding Checks: What will happen to the checks which have not cleared my account?
- Records/Account Histories: What if I need information regarding my account during the time Hillcrest Bank Florida was in business?
- Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information?
- Uninsured: Will I collect my uninsured deposits?
- Wire Transfer: Can funds be wired to me?
- Automatic Payments: Will my ACH transaction payment still occur on its assigned date?
- Construction Loan Draws: Will draws continue and will my project be completed?
- Escrows: Will my escrows continue to be paid?
- Fees: Are there any changes to fees or charges due to this event?
- Foreclosures: Will the FDIC continue foreclosures in process?
- Lender and contact names: Who is my lender and has my loan contact changed?
- Loan Sales Will my loan be sold?
- Line of Credit Advances Home Equity: Can I continue to obtain advances on my line of credit?
- Loan in Process: I have a loan currently in process. How is my loan impacted?
- Loan Sweep: Will my loan sweep be discontinued?
- Payments: How/where do I make my payments?
- Pre-payment Penalty: If I refinance, will my pre-payment penalty be waived?
- What Happens Now: What will happen to my loan?
- Offers to Purchase Other Real Estate: Will my offer still be considered?
- All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured and uninsured, pass in some transactions but not in others?
- FDIC Insurance: How can I find out more information about FDIC Insurance rules?
- Media: I represent a TV/Newspaper/Radio and would like some information.
- New Bank Insured: Is the new bank insured by the FDIC?
- Safe Deposit Box: How can I claim the contents of my safe deposit box?
- Shareholders: I am a shareholder. What happens to my shares?
- Unpaid Bill: I am owed money by Hillcrest Bank Florida. What should I do?
- What happened?: What happened, why did the bank fail?
1. What if I have more than $250,000 in my accounts at Hillcrest Bank Florida?
All deposit accounts have been transferred in their entirety to Stonegate Bank. All former Hillcrest Bank Florida offices will reopen for normal business hours on Monday, October 26, 2009, as branches of Stonegate Bank.
As an All-Deposit Transfer transaction, the total of all deposit accounts, whether within FDIC insurance limits or not, have been assumed by Stonegate Bank and will be available for business as usual.
2. 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.
3. Can I continue to write checks or use my ATM/Debit card?
You will be able to continue using your checks at this time, and your ATM/Debit card will continue to work.
4. Will my automatic payments through Billpay continue?
Billpay will be available as usual.
5. I am a deposit broker or I have brokered deposits. What do I need to do?
As an All-Deposit Transfer transaction, the total of all deposit accounts, excluding the Cede & Co. brokered deposits, have been assumed by Stonegate Bank. The FDIC retained the Cede & Co. brokered deposits and will pay those accounts off directly.
If you are a customer who has a Hillcrest Bank Florida deposit through a broker, you must contact your broker with any questions.
6. 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/pr09188.html) can be provided as both documents state all deposits have been transferred to Stonegate Bank, and it is business as usual. Copies of the press release will be available at the former Hillcrest Bank of Florida branches. Depositors or merchants can also call the FDIC at 1-800-517-1846 or the former Hillcrest Bank Florida branches.
7. How do I claim my account?
Your account has already been transferred to Stonegate 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 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 state treasurer’s office or office of unclaimed property.
8. How does this failure affect me?
All deposits (both insured and uninsured) of Hillcrest Bank Florida have been transferred to Stonegate Bank, and it will be business as usual. If you held an account at Hillcrest Bank Florida, you now have an account at Stonegate Bank that is available to you at your former Hillcrest Bank Florida branches during regular business hours.
Please note: Customers of both banks should continue to use their respective existing branches until Stonegate Bank can fully integrate the deposit records of Hillcrest Bank Florida. You will be notified in advance of this conversion.
The former Hillcrest Bank Florida locations will reopen for normal business hours on Monday, October 26, 2009. You will have continued access to your money through your ATM/debit card and by writing checks.
If you had a loan with the bank, continue to make your checks payable to Hillcrest Bank Florida and mail to the same address you have used in the past until you are instructed otherwise.
9. 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 deposits 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 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.
10. What will happen to my direct deposits?
Direct Deposits, including Social Security checks, will continue as normal. If you need to change anything in the future, please contact or visit your former Hillcrest Bank Florida branch location to make those arrangements.
11. 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 renew your CD.
12. How will I get my final account statement(s) from Hillcrest Bank Florida?
You will receive your account statements at the same time you have received them in the past.
13. Will I continue to earn interest at the same rate?
All interest on deposits accrued through Friday, October 23, 2009, will be paid at your same rate. Stonegate Bank will review rates and notify you if interest rates will change. Your interest rate may be reduced.
If you deposited funds through a broker, the interest will accrue and be paid through Friday, October 23, 2009.
14. Can I cash my interest check or cashier's check?
Interest checks and cashier's checks will continue to clear.
15. Will my Internet connection to Hillcrest Bank Florida work?
The bank website will be available for regular transactions as usual.
16. What if I have an Individual Retirement Account (IRA)?
All deposits, including IRAs have been transferred in their entirety to Stonegate 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.
17. Will I lose anything on my deposit account?
No. All accounts have been transferred in their entirety to Stonegate Bank and will be available starting on Monday, October 26, 2009.
18. What will happen to the checks which have not cleared my account?
Checks drawn on Hillcrest Bank Florida that did not clear before Friday, October 23, 2009, will be honored up to your available balance.
19. What if I need information regarding my account during the time Hillcrest Bank Florida was in business?
Please contact a representative at your former Hillcrest Bank Florida branch location to obtain a copy of any records you may need or visit your branch.
20. Who will send my 1098 and/or 1099 information after the end of the year?
Stonegate 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.
21. Will I collect my uninsured deposits?
All deposits have been transferred in their entirety to Stonegate Bank; therefore, you have received your deposits in full.
22. Can funds be wired to me?
Please contact your former Hillcrest Bank Florida branch location to obtain information regarding your wire request.
23. Will my automatic transaction 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.
24. Will construction draws continue? Will my project be completed? 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.
25. 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.
26. Are there any changes to fees or charges due to this event?
No. The current fee structure will remain the same.
27. 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 borrowers’ 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.
28. Who is my lender and has my loan contact changed?
Your loan is being serviced by all of the same personnel with whom you have worked in the past. All prior contacts remain the same. You will receive a letter within a week advising you of the ownership of your loan.
29. Will my loan be sold?
Your loan may be sold at a future 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.
30. Can I continue to perform advances on my personal 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 Stonegate Bank to discuss the possibility of establishing a borrowing relationship.
31. I have a loan currently in process. How is my loan impacted?
Please contact your loan officer directly.
32. Will my loan sweep be discontinued?
This will be determined on a case-by-case basis. Please contact your loan officer.
33. How and where do I make my payments?
You should continue to make your payments as agreed. Make checks payable to Hillcrest Bank Florida and utilize the same payment address information.
34. 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 Hillcrest Bank Florida has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.
35. 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 date. If that occurs, you will be notified in advance through written correspondence. 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.
36. I was in the process of negotiating the purchase of real property held by Hillcrest Bank Florida. Will my offer still be considered?
The FDIC, as Receiver has hired Prescient, Inc., to handle the management and disposition of real property acquired from the Institution. If you have questions regarding the status of your offer, please feel free to contact Prescient directly as follows:
Prescient Asset Management
2600 Douglas Rd Suite 800
Coral Gables, FL 33134
1-786-433-0322 or 1-877-520-1112
37. Why do all deposits, insured or not, 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.
38. 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): www.fdic.gov. At the website,
- Click on Deposit Insurance
- Click on "Are my deposits insured?"
- Click on "Your Insured Deposits" (for a comprehensive guide)
- Click on "EDIE" (to calculate your insurance coverage)
You may also order any FDIC publication by mail by sending your request to the following:
3501 North Fairfax Drive
Arlington, VA 22226
39. I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
40. Is the new bank insured by the FDIC?
Yes. Your transferred deposit at Stonegate Bank is insured by the FDIC to at least $250,000, as established by law.
41. 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 Hillcrest Bank Florida branch location.
42. I am a shareholder. What happens to my shares?
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.
43. I did some work for Hillcrest Bank Florida and have not yet been paid. What should I do?
All claims against Hillcrest Bank Florida, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
Federal Deposit Insurance Corporation
Receiver: Hillcrest Bank Florida
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent
For more information: www.fdic.gov/bank/individual/failed/hillcrest-fl.html