Q: What happened at First East Side Savings Bank?
A: As of close of business Friday, Oct. 19, 2012, the Office of the Comptroller of the Currency closed First East Side Savings Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as Receiver. The FDIC quickly moved to protect depositors by arranging for a deposit transfer through a purchase and assumption transaction.
Q: When is this taking effect?
A: This change occurred at 5:00 pm (EST) Friday, Oct. 19, 2012.
Q: Will First East Side Savings Bank become Stearns Bank N.A.?
A: Yes. First East Side Savings Bank opened on Saturday, Oct. 20, 2012, as Stearns Bank N.A. Depositors of First East Side Savings Bank will automatically become depositors of Stearns Bank N.A. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.
Q: How will this affect former First East Side Savings Bank customers?
A: Stearns Bank’s assumption of deposits allows First East Side Savings Bank consumers and businesses to continue access to their deposits. If you held an account at First East Side Savings Bank, you now have an account at Stearns Bank. You will have continued access to your money through your ATM/debit card, online banking, mobile banking, and by writing checks.
Q: Can I continue to write checks, use my ATM/debit card or access online banking, mobile banking & bill pay?
A: Yes. You will be able to continue using your personal and business checks, have access to online banking, mobile banking, & bill pay, and access with your ATM/debit card.
Q: A merchant will not honor my check. What can I do?
A: 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.
Q: What if my deposits exceeded the FDIC deposit insurance limit?
A: All of your deposits were transferred and are safe and currently available with Stearns Bank.
To check whether your account is fully insured: Click Here
Electronic Deposit Estimator: Click Here
For further questions contact the FDIC Call Center at 1-800-822-9247, hours of operation (mountain time) are 9 am – 9 pm.
Q: What will happen to my direct deposits?
A: Direct Deposits will continue as normal, including Social Security checks. If you need to change anything in the future, please contact or visit your local branch to make those arrangements.
Q: Will my automatic payments through bill pay continue?
A: Yes. Bill pay automatic payments will continue.
Q: Will I lose anything on my deposit account?
A: No. YOUR MONEY IS SAFE! No one lost any money on deposit as a result of the closure of this institution.
Q: Will I incur an early withdrawal penalty if I close my CD before maturity?
A: No. You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Stearns Bank.
Q: Will I continue to earn interest at the same rate?
A: If you had a certificate of deposit (CD) with First East Side Savings Bank, Stearns Bank will send you a letter by Oct. 26, 2012 advising you what it plans to do with current interest rates. You may withdraw funds from any CD without early withdrawal penalty until you enter into a new deposit agreement. Please also see Notice to Depositors from the FDIC for additional information.
Q: What will happen to the checks which have not cleared my account?
A: Checks that were drawn on First East Side Savings Bank that did not clear before the institution closed will be honored up to your available balance.
Q: What if I need information regarding my account during the time First East Side Savings Bank was in business?
A: Please contact a representative at your local branch to obtain a copy of any records you may need.
Q: What will happen to my loan with First East Side Savings Bank?
A: If you had a loan with First East Side Savings Bank, you should continue to make your payments as usual. The terms of your loan will not change, because they are contractually agreed to in your promissory note. 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.
Q: What type of loans does Stearns Bank offer?
A: Stearns Bank is a nationwide preferred lender that specializes in Affordable Housing, Small Business Lending, Commercial Real Estate & Construction, and Rural Development. We also offer competitive home loans with a variety of options to meet all your needs.
Q: Can I get an equipment lease?
A: Yes, Stearns Bank has an Equipment Finance Division that offers lease and finance options on a variety or new or used equipment. Call 1-800-247-1922 for more information.
For all other questions regarding new loans and the lending policies of Stearns Bank, please contact your branch office. Please see A Borrower’s Guide to an FDIC Insured Bank Failure for additional information.
Q: Who is Stearns Bank?
A: Stearns Bank N.A. is an independently owned bank established in 1912, under the current ownership of Norm Skalicky since 1964 with locations in Arizona, Minnesota, Florida, Georgia, as well as a nationwide equipment finance division. We are a full service bank that offers a wide array of products and services for both individuals and businesses locally and nationwide. Bank locations in Florida include Sarasota, St. Petersburg, Venice and now Tamarac. We get the job done!
For complete details on the acquisition visit the FDIC website.