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Failed Bank Information

Information for Citizens State Bank, New Baltimore, MI

  1. Introduction
  2. Press Release
  3. Is My Account Fully Insured?
  4. Deposit Insurance National Bank
  5. Question and Answer Guide
  6. Banking Services
  7. Loan Customers
  8. Possible Claims Against the Failed Institution
  9. Priority of Claims
  10. Dividend Information
  11. Brokered Deposits
  12. Purchase and Assumption Agreement - PDF
  13. Balance Sheet Summary

I.  Introduction

On Friday, December 18, 2009, Citizens State Bank, New Baltimore, MI was closed by The Michigan Office of Financial and Insurance Regulation 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 answer many of your questions.

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II.  Press Release

The FDIC has issued a press release (PR-235-2009) about the institution's closure.  If you represent a media outlet and would like information about the closure, please contact LaJuan Williams-Young at 1-202-898-3876.

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III.  Is My Account Fully Insured?

FDIC provides a tool that will allow you to verify the insurance status of each of your accounts. That status will be available no later than the first business day after bank failure.

Click the link below and enter your account number in the search screen. One of two messages will appear:

  1. "Your account is fully insured" along with a link will that provides additional information or
  2. a message advising you to contact the FDIC along with contact information.

Is My Account Fully Insured?

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IV.  Deposit Insurance National Bank (DINB)

The FDIC has created the Deposit Insurance National Bank of New Baltimore (DINB of New Baltimore), New Baltimore, MI to facilitate the resolution of Citizens State Bank. All insured deposits, CDs, and IRAs, have been transferred to DINB of New Baltimore and will be available immediately.

Checks for insured CDs and insured IRAs will be sent to your mailing address on record with Citizens State Bank. These will be mailed on Monday, December 21, 2009 and you should receive these checks by the end of the week.

Principal and interest on insured accounts, through Friday, December 18, 2009, are fully insured by the FDIC, up to the insurance limit of $250,000.  You will receive full payment for your insured account.  Certain entitlements and different types of accounts can be insured for more than the $250,000 limit.  IRA funds are insured separately from other types of accounts, up to a $250,000 limit.

All interest bearing accounts that exceed the $250,000 insurance limit and/or all interest bearing accounts that appear to be related and exceed this limit are reviewed by the FDIC to determine their ownership and insurance coverage.  If you think you might have uninsured deposits, you should call the FDIC Call Center to arrange for a telephone interview with  a Claims Agent at (888) 206-4662. The Claim Agent may direct you to download and submit a particular form that will assist in expediting the processing of your claim.

List of Affidavits, Declarations, and Forms available for download

FDIC Call Center
(888) 206-4662
Hours of Operation

All Hours are Eastern Time

(888) 206-4662

Friday, December 18, 2009: Until 9:00 p.m.
Saturday, December 19, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, December 20, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.*

NOTE: Due to the Christmas Holiday, the call center will not be operational between the hours of 3 p.m., Thursday, December 24, and 8 a.m. Monday, December 28.

If it is determined that you have uninsured funds, the FDIC will generate and mail to you a Receiver Certificate.  This certificate entitles you to share proportionately in any funds recovered through the disposal of the assets of Citizens State Bank.  This means that you will eventually recover some of your uninsured funds.

To find out more about FDIC Deposit Insurance:

Checks that were drawn on Citizens State Bank will be honored up to your available balance or the insured amount until close of business on February 1, 2010.  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.  A hold may be in place on deposit accounts due to delinquent loans where the depositor is the borrower or guarantor.  Additionally, any account pledged as collateral for a loan will be held.

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V.  Banking Services

The ATM will not be available for a short period of time on Friday for processing. However, it will be operational shortly thereafter and available as usual until January 8, 2010.

Online services will be in a read-only mode until Monday, December 21, 2009. Any payments scheduled must clear your account by January 8, 2010.

During the period ending on February 1, 2010, you are encouraged to make arrangements with DINB of New Baltimore regarding your safe deposit boxes and any other services to which you previously had access.

Your checks will be processed as usual through February 1, 2010.  All outstanding checks that clear prior to February 1, 2010 will be paid against your available insured balance(s) as if no change had occurred.  If you have a problem with a merchant refusing to accept your check, please contact your branch office.  An account representative will clear up any confusion about the validity of your checks.

All interest accrued through Friday, December 18, 2009, will be paid at your same rate.  Interest will not continue to accrue after that date.

Automatic direct deposit(s) will continue until close of business February 1, 2010. Automatic withdrawal(s) must clear your account by February 1, 2010 or they will be returned. You should make arrangements with another financial institution as soon as possible.

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VI.  Loan Customers

If you had a loan with Citizens State 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 payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, please contact your loan officer.

Please see A Borrower's Guide to an FDIC Insured Bank Failure for additional information.

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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. If you or your company provided a service or product, leased space, furniture, or equipment to Citizen State Bank after Friday, December 18, 2009 and have not been paid you do not have a claim against Citizens State Bank. Please follow your normal billing procedures by providing an invoice as instructed.

If you or your company provided a service or product, leased space, furniture, or equipment to the Citizens State Bank prior to Friday, December 18, 2009 and have not been paid you may be entitled to a claim against the bank. If you provided a product to or a service for Citizens State Bank prior to the bank's failure for which you have not been paid and you have not received communication, contact:

FDIC as Receiver for Citizens State Bank
1601 Bryan Street
Dallas, TX  75201-3430
Attention: Claims Agent

Please note: There are time limits for filing a claim, your claim must be filed on or before 3/24/2010.

Citizens State Bank had no publicly owned stock. Equity shareholders were invested in the holding company, Citizens State Bancorp, New Baltimore, MI, and not in the bank. Please do not file a claim with the Receiver, rather, contact the holding company with any questions you may have:

Citizens State Bancorp, Inc.
51066 Washington Street
New Baltimore, MI 48047

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VIII.  Priority of Claims

In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:

  1. Depositors
  2. General Unsecured Creditors
  3. Subordinated Debt
  4. Stockholders

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IX.  Dividend Information

Dividend History on Citizens State Bank

Dividend Information on Failed Financial Institutions

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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.

Deposit Broker Processing Guide

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General Disclaimer