Failed Bank Information
Information for Hume Bank, Hume, MO
- Press Release
- Acquiring Financial Institution and Your Insured Deposits
- Question and Answer Sheet
- Banking Services
- Loan Customers
- Possible Claims Against the Failed Institution
- Priority of Claims
- Dividend Information
- Brokered Deposits
- Purchase and Assumption Agreement (2.8 mb PDF File - PDF Help)
- Balance Sheet Summary
On March 7, 2008, Hume Bank, Hume, MO was closed by the Missouri Division of Finance and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should help answer many of your questions.
II. Press Release
The FDIC has issued a press release (PR-21-2008) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact David Barr at 202-898-6992.
III. Acquiring Financial Institution and Your Insured Deposits
All insured deposit accounts have been transferred to Security Bank, Rich Hill, MO ("assuming institution") and will be available immediately. Your bank will re-open on Monday during regular business hours at the former Hume Bank main office and branch.
Principal and interest on insured accounts, through March 7, 2008, are fully insured by the FDIC, up to the insurance limit of $100,000. You will receive full payment for your insured account. Certain entitlements and different types of accounts may be insured for more than the $100,000 limit. IRA funds are insured separately from other types of accounts, up to a $250,000 limit.
If it is determined that you have uninsured funds, the FDIC will mail you a Receiver Certificate. This certificate entitles you to share proportionately in any funds recovered through the assets of Hume Bank. This means that you may eventually recover some of your uninsured funds.
All accounts that exceed the $100,000 insurance limit, and/or all accounts that appear to be related and exceed this limit, are reviewed by the FDIC to determine their ownership and insurance coverage. If it appears that you have potentially uninsured funds, an FDIC Claim Agent will contact you, by either telephone or mail, regarding your account(s). Or, you may call (888) 206-4662 up to 9:00 pm Central on March 7, 2008 and between 9:00 am and 6:00 pm Central thereafter, to arrange for a telephone interview with a Claim Agent. The Claim Agent may direct you to download and submit a particular form that will assist in expediting the processing of your claim.
Your transferred deposits will be separately insured from any accounts you may already have at Security Bank for six months after the failure of Hume Bank. Checks that were drawn on Hume Bank that did not clear before the institution closed will be honored up to the insurance limit. If you have questions about your account(s) transferred to the assuming bank, you may speak to an FDIC representative regarding deposit insurance by calling (888) 206-4662.
For all questions regarding new loans and the lending policies of Security Bank, please call 1-660-643-7612.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.
You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Security Bank by either making a deposit to or a withdrawal from your account, provided the deposits are not pledged as collateral for loans.
V. Banking Services
You may continue to use the services to which you previously had access, such as automatic teller machines (ATMs), safe deposit boxes, night deposit boxes, wire services, etc.
Your checks will be processed as usual. All outstanding checks will be paid against your available insured balance(s) as if no change had occurred. Security Bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact Security Bank, Customer Service Department, at 1-660-643-7612. An account representative will clear up any confusion about the validity of your checks.
After March 7, 2008, your account will earn interest at a rate determined by Security Bank. You will be notified by letter regarding this matter.
Your automatic direct deposit(s) and/or automatic withdrawal(s) should be transferred automatically to your assuming institution. You should contact your assuming institution, however, to discuss your account(s) and to insure that service is not delayed or discontinued.
All your deposit account histories and records will be transferred to your assuming institution. If your assuming institution requires any additional signatures or forms, it will notify you. If you have any questions or special requests, you may contact a representative of your assuming institution at 1-660-643-7612.
VI. Loan Customers
If you had a loan with Hume Bank, you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract because they are contractually agreed to in your promissory note with the failed institution. Checks should be made to your former bank and sent to the same address until further notice.
VII. Possible Claims Against the Failed Institution
Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. Shortly after the failure, the FDIC sends notices directly to all known service providers to explain the claim filing process.
Please note: there are time limits for filing a claim, as specified in the notice.
If you provided a service for Hume Bank and have not received a notice, please contact:
Federal Deposit Insurance Corporation
Receiver: Hume Bank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas 75201
Call toll free (888) 206-4662
VIII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:
- General Unsecured Creditors
- Subordinated Debt
IX. Dividend Information
X. Brokered Deposits
The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution.