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FDIC Approves the Payout of the Insured Deposits of Arcola Homestead Savings Bank, Arcola, Illinois
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of Arcola Homestead Savings Bank, Arcola, Illinois. The bank was closed today by the Illinois Department of Financial Professional Regulation – Division of Banking, which appointed the FDIC as receiver.
The FDIC was unable to find another financial institution to take over the banking operations of Arcola Homestead Savings Bank. As a result, checks to the retail depositors for their insured funds will be mailed on Monday. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. Customers who placed money with brokers should contact them directly for more information about the status of their funds.
On Monday, the FDIC will mail checks to customers for their insured funds in savings accounts, IRAs and certificates of deposit (CDs). As a convenience to local depositors, the FDIC has made arrangements for the insured funds in checking, NOW and Money Market accounts to be transferred to the Arcola branch of First Mid-Illinois Bank & Trust, National Association, located at 249 W. Springfield Road. Customers will have access to their checking, NOW and Money Market account funds at this branch between Monday, June 7 and Saturday, June 12. It is important to note, however, that customers of Arcola Homestead Savings Bank will no longer be able to write checks and must come in person to either claim their money or set up a new account. After June 12, the FDIC will mail any remaining funds to the owner of these accounts.
As of March 31, 2010, Arcola Homestead Savings Bank had approximately $17.0 million in total assets and $18.1 million in total deposits. At the time of closing, there did not appear to be any uninsured funds.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-238-8209. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/arcolail.html.
Beginning on Monday, customers of Arcola Homestead Savings Bank with deposits exceeding $250,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at https://www2.fdic.gov/drrip/afi/index.asp.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.2 million. Arcola Homestead Savings Bank is the 80th FDIC-insured institution to fail in the nation this year, and the twelfth in Illinois. The last FDIC-insured institution closed in the state was Midwest Bank and Trust Company, Elmwood Park, on May 14, 2010.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,932 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-131-2010
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