Question and Answer Guide
Strategic Capital Bank, Champaign, IL
FDIC Call Center
Toll free number 1-866-954-9527
Hours of Operation – Central Time
Friday, May 22, 2009: Until 9:00 p.m.
Saturday, May 23, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, May 24, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
The following answers are provided to the most commonly asked questions by customers of the failed bank. The total balance in your account(s) has been transferred to Midland States Bank, Effingham, IL and will be available for transactions during regular business hours at the former Strategic Capital Bank.
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.
On May 22, 2009, Strategic Capital Bank 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, Midland States Bank acquired the assets and most of the liabilities of Strategic Capital Bank from the FDIC as Receiver for Strategic Capital Bank. Any claims by equity holders were not acquired. Share price does not trigger a bank closing and was not the reason for Strategic Capital Bank's failure.
- Account(s): What about my account with Strategic Capital Bank?
- ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Strategic Capital Bank?
- Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
- Direct Deposits - Government Deposits: What will happen to my direct deposits?
- Existing Deposits at Midland States 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?
- Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?
- Loans/mortgages: What about my loan or mortgage with Strategic Capital Bank?
- Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?
- Media: I represent a TV/Newspaper/Radio and would like some information.
- Outstanding Checks: What about checks that I have written on my account with Strategic Capital Bank?
- Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
- Shareholders: What about my shares of stock, notes or subordinated notes that I own in Strategic Capital Bancorp, Inc.?
- Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?
1. What about my account with Strategic Capital Bank?
If you had an account with Strategic Capital Bank, you now have an account with Midland States Bank. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirement accounts have been transferred to Midland States Bank, Effingham, IL, regardless of the dollar amount. No one lost any money on deposit in Strategic Capital Bank.
Customers of both banks should continue to use their existing branches until Midland States Bank can fully integrate the deposit records of Strategic Capital Bank.
Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.
2. What about my ATM/debit card and/or bill paying with Strategic Capital Bank?
Your ATM/debit card will continue to work, and bill paying will work as it has in the past.
3. Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
Midland States Bank will be reviewing rates and will notify you.
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.
4. What will happen to my direct deposits?
Direct Deposits will continue as normal, including Social Security checks.
5. 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 Midland States 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.
6. 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 Midland States Bank.
Be advised, however, that from and after the date of closing, Midland States Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, Midland States Bank shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.
7. What about my loan or mortgage with Strategic Capital Bank?
All mortgages and loans have been assumed by Midland States 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 Strategic Capital Bank and send your payments to the same address.
8. 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.
9. I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
10. What about checks that I have written on my account with Strategic Capital Bank?
Your checks will clear up to the available balance in your account. You can continue to use your existing checks.
11. 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.
12. What about my shares of stock, notes or subordinated notes that I own in Strategic Capital Bancorp, Inc.?
There was no publicly owned stock in Strategic Capital Bank. If you are an equity shareholder, your shares are in Strategic Capital Bancorp, Inc., Champaign, Illinois, the holding company for Strategic Capital Bank, and not the institution. Strategic Capital Bancorp, Inc. and the interests of equity, debt holders or other creditors of Strategic Capital Bancorp, Inc. are not included in the closure or receivership of the institution. Please do not file a claim with the Receiver, rather contact Strategic Capital Bancorp, Inc. directly for information:
Strategic Capital Bancorp, Inc.
1608 Broadmoor Dr.
Champaign, Illinois 61821
Any claims by equity holders were not acquired.
All claims against Strategic Capital Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
FDIC as Receiver of Strategic Capital Bank
1601 Bryan Street
Dallas, TX 75201
13. 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.
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/strategiccapital.html