Question and Answer Guide
Mutual Bank, Harvey, IL
FDIC Call Center
Toll free number 1-800-930-5172
Hours of Operation – Eastern Time
Friday, July 31, 2009: Until 9:00 p.m.
Saturday, August 1, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, August 2, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
On July 31, 2009, Mutual Bank, Harvey, IL, was closed by the Illinois Department of Financial and Professional Regulation, Division of Banking. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, United Central Bank, Garland, TX acquired substantially all the deposits and assets of Mutual Bank from the FDIC as Receiver for Mutual Bank. Any claims by equity holders were not acquired.
The total balance in your account(s) has been transferred to United Central Bank and will be available for transactions during regular business hours at the former Mutual Bank Branches starting on Saturday, August 1, 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.
Account(s): What about my account with Mutual Bank?
If you had an account with Mutual Bank, you now have an account with United Central Bank, Garland, TX. All deposit accounts, which include checking, savings, money market, CDs and retirement accounts, have been transferred to United Central Bank, regardless of the dollar amount. No one lost any money on deposit in Mutual Bank.
Customers of both banks should continue to use their existing branches until United Central Bank can fully integrate the deposit records of Mutual Bank.
To forewarn you of any scams, please be advised that you will not receive any e-mail notification from the FDIC, the Receiver, or United Central 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 or individuals or entities purporting to act on behalf of Mutual Bank.
ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Mutual Bank?
Your ATM/debit card will continue to work, and bill paying will work as it has in the past.
Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?
As an All-Deposit Transfer transaction, the total of all deposit accounts, including brokered deposits, have been assumed by United Central Bank.
Be advised, however, that from and after the date of closing, United Central Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, United Central Bank shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.
If you are a customer who has a Mutual Bank deposit through a broker, you must contact your broker with any questions.
Direct Deposits - Government Deposits: What will happen to my direct deposits?
Direct Deposits, including Social Security checks, will continue as normal.
Existing Deposits at United Central 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 accounts transferred to United Central Bank 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 failed 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.
Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
All interest on insured deposits accrued through Friday, July 31, 2009, will be paid at your same rate. United Central Bank will review rates and notify you if interest rates will change.
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.
Loans/mortgages: What about my loan or mortgage with Mutual Bank?
All mortgages and loans have been assumed by United Central Bank. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to Mutual Bank and send your payments to the same address.
Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?
You should contact your loan officer. All prior contacts remain the same.
Media: I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
Outstanding Checks: What about checks that I have written on my account with Mutual Bank?
Your checks will clear up to the available balance in your account. You can continue to use your existing checks.
Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
It is business as usual. You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.
Shareholders: What about my shares of stock?
Shares in Bank Holding Company:
All shares of Mutual Bank were owned by its holding company, First Mutual Bancorp of Illinois, Inc., Harvey, IL. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of First Mutual Bancorp of Illinois, Inc., please do not contact or file a claim with the Receiver. You may contact First Mutual Bancorp of Illinois, Inc. directly for information as follows:
First Mutual Bancorp of Illinois, Inc.
16540 South Halsted Street
Harvey, IL 60426
Shares in Bank:
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.
Transaction Types: 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 has been able to transfer all deposits in about 25% of the failures over the past 15 years.
Unpaid Bills: Why do all deposits, insured or not, pass in some transactions but not in others?
All claims against Mutual Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
FDIC as Receiver for Mutual Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent
SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.
For more information: www.fdic.gov/bank/individual/failed/mutual-harvey.html