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Bank Failures

Question and Answer Guide

Citizens National Bank, Macomb, IL

FDIC Call Center
Toll free number 1-866-954-9529
Hours of Operation – Central Time
Friday, May 22, 2009: Until 9:00 p.m.
Saturday, May 23, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, May 24, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.

The following answers are provided to the most commonly asked questions by customers of the failed bank. The total balance in your account(s) has been transferred to Morton Community Bank, Morton, Illinois and will be available for transactions during regular business hours at the former Citizens National Bank branches.

You may continue to use your same checks, ATM cards and debit cards until notified otherwise.

All Direct Deposits, including Social Security checks will continue as usual.

On May 22, 2009, Citizens National Bank was closed by the Office of the Comptroller of the Currency. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, Morton Community Bank acquired all assets except securities and acquired all liabilities of Citizens National Bank except the brokered deposits from the FDIC as Receiver for Citizens National Bank. Any claims by equity holders were not acquired.

Account(s): What about my account(s) with Citizens National Bank?

If you had an account with Citizens National Bank, you now have an account with Morton Community Bank. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirement accounts have been transferred to Morton Community Bank, Morton, Illinois, regardless of the dollar amount. No one lost any money on deposit in Citizens National Bank.

Customers of both banks should continue to use their existing branches until Morton Community Bank can fully integrate the deposit records of Citizens National Bank.

Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.


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ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Citizens National Bank?

Your ATM/debit card will continue to work, and bill paying will work as it has in the past.


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Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?

All brokered deposits will be funded and paid out directly by the FDIC. Brokers will not need to submit paperwork to claim funds. For additional recorded guidance relative to broker processing, you may call 1-877-872-1685.

If you are a customer who has a Citizens National Bank deposit through a broker, you must contact your broker with any questions.


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Direct Deposits - Government Deposits: What will happen to my direct deposits?

Direct Deposits, including Social Security checks, will continue as normal.


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Existing Deposits at Morton Community Bank: I already have other deposit accounts with the new bank.  When combined with balances at this bank, my deposits exceed $250,000.  Are all funds insured?

The accounts transferred to Morton Community Bank will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.


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Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

Morton Community Bank will be reviewing rates and will notify you.

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. Entering a new deposit agreement can be done by either renewing your CD or making a deposit to or withdrawing money from your account.


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Loans/mortgages: What about my loan or mortgage with Citizens National Bank?

All mortgages and loans have been assumed by Morton Community Bank. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to Citizens National Bank and send your payments to the same address.


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Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer. All prior contacts remain the same.


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Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

David Barr
202-898-6992
dbarr@fdic.gov


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Outstanding Checks: What about checks that I have written on my account with Citizens National Bank?

Your checks will clear up to the available balance in your account. You can continue to use your existing checks.


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Safe Deposit Boxes: How can I claim the contents of my safe deposit box?

It is business as usual.  You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.


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Shareholders: What about my shares of stock, notes or subordinated notes that I own in Citizens Central Bancorp, Inc. ?

There was no publicly owned stock in Citizens National Bank. If you are an equity shareholder, your shares are in Citizens Central Bancorp, Inc., Macomb, Illinois the holding company for Citizens National Bank, and not the institution. Citizens Central Bancorp, Inc. and the interests of equity, debt holders or other creditors of Citizens Central Bancorp, Inc. are not included in the closure or receivership of the institution. Please do not file a claim with the Receiver, rather contact Citizens Central Bancorp, Inc. directly for information:

Citizens Central Bancorp, Inc.
127 South Side Square
Macomb, IL 61455

Any claims by equity holders were not acquired.

All claims against Citizens National Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:

FDIC as Receiver of Citizens National Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent


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Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution.  The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction.  The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.


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SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.

For more information: www.fdic.gov/bank/individual/failed/citizensnational.html


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Last Updated: August 17, 2012