Saturday, July 26, 2008

First National Bank of Arizona Fails

Photo credit to I Can Has Cheezburger

A Scottsdale-based bank has failed - The First National Bank of Arizona was shut down by the FDIC on Thursday, July 25. The foregoing link leads you to the FDIC's website press release about the closure.

FNB-AZ merged with FNB-Nevada in late June. FNB-NV was shut down, but FNB-AZ was included in the closure.

Contrary to the graphic, not much changes right now for people who did business with FNB-AZ.

What Happens if You Had Less Than $100,000 In FNB-AZ

All deposit accounts have been transferred to Mutual of Omaha Bank, Omaha, Nebraska ("assuming institution"). All deposit accounts will be available as usual.

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.

Your automatic direct deposit(s) and/or automatic withdrawal(s) should be transferred automatically.

All your deposit account histories and records will be transferred.

If you had a loan with First National Bank of Nevada, 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.

What Happens if You Had More Than $100,000 in FNB-AZ

Contact thee FDIC at 1-866-674-8944 or 1-800-523-8089 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.

From the EDIE website: "If you or your family's deposit accounts at one FDIC-Insured Institution total $100,000 or less, your deposits are fully insured. If you or your family has more than $100,000 at one insured institution, you can still be fully insured if your accounts meet certain requirements. You can use EDIE to determine your insurance coverage beyond the basic $100,000 amount."

So there's the scoop. Remember not to panic in the streets people. It's messy.