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Bank Failures

Question and Answer Guide for Centennial Bank, Ogden, UT

Centennial Bank, Ogden, UT

En Español

FDIC Call Center
Toll free number 1-800-889-4976
Hours of Operation – Mountain Time

Friday, March 5, 2010 :   Until 9:00 p.m.
Saturday, March 6, 2010:   9:00 a.m. – 6:00 p.m.
Sunday, March 7, 2010:   Noon – 6:00 p.m.
Thereafter:   8:00 a.m. – 8:00 p.m.

Is My Account Fully Insured? (https://closedbanks.fdic.gov/aii/)
Electronic Deposit Insurance Estimator   (www.fdic.gov/edie)

The Utah Department of Financial Institutions closed Centennial Bank, Ogden, Utah, on Friday, March 5, 2010. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was appointed as Receiver. According to regulatory policy, the public is not given advance notice of the closure.

No Centennial Bank depositor lost any insured deposits because of the closure of Centennial Bank.

An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing checks for their insured amount(s). The FDIC will mail you a check for your insured deposit. Checks to the retail depositors for their insured funds will be mailed on Monday morning, March 8, 2010. If the balance in your interest bearing account(s) (this includes any accounts in which you have an ownership) is less than $250,000, or if your deposit is in a non-interest bearing transaction account(s), no action is required on your part at this time.

The following answers are provided to the most commonly asked questions by customers of the failed bank.

DEPOSIT QUESTIONS

Over $250,000: What if I have more than $250,000 in my accounts at Centennial Bank?

If you have more than $250,000 in your interest-bearing account, or if the total of your related interest-bearing accounts exceeds $250,000, your accounts may require review by an FDIC Claim Agent. You should call the FDIC to schedule a telephone appointment with an FDIC Claim Agent at 1-800-889-4976.

If you have an interest-bearing account or group of interest-bearing accounts that exceeds $250,000, you may need to complete certain declarations or affidavits and provide documentation so that the FDIC can make an insurance determination on your account(s).

If you are an investor with a deposit broker, you may need to complete one of these forms only if your investment exceeds $250,000. However, you must mail your form to your deposit broker for submission to the FDIC.

If your deposits do not exceed $250,000, or if your deposits are in a noninterest-bearing transaction account(s) you DO NOT need to complete these documents or contact the FDIC.

A hold may be placed on an account for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in a trust. These forms can be mailed to you, or you can access them on the Internet at: Deposit Claims (www.fdic.gov/forms/deposit-claims-asset-sales).

If you have a question regarding the completion of required affidavits or declarations, please call (800) 889-4976 and indicate you have a form completion question.


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Account Hold: I have been advised there is a hold on my account. What does that mean?

It is possible a depositor’s account was held due to delinquent loans where the depositor is the borrower or guarantor. Additionally, any account pledged as collateral for a loan will continue to be held. A letter will be sent informing you of any holds placed by the FDIC, along with instructions on how to proceed. If you have any questions regarding these holds, please call the FDIC at the number provided in the letter.

Another reason an account hold may be placed is due to the need for additional documentation from a depositor. For example, a Declaration for Trust form may be required to attest to the parties involved in the trust. Please contact the FDIC at 1-800-889-4976 to schedule a telephone appointment.
 
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Account Insurance Status: Is my account fully insured? Is there a method to verify whether my account(s) at Centennial Bank are fully insured?

A tool, Is My Account Fully Insured? (https://closedbanks.fdic.gov/aii/), is available that allows failed bank customers the ability to verify whether their account is fully insured or if they need to contact the FDIC.  This service will be available for use no later than the first business day after the bank's failure.  Once you enter your account number, your insurance status for that account will appear.  If there is a hold on your account, it may be due to the need for the additional documentation referenced in question number one. If there is a hold, you will need to contact the FDIC at 1-800-889-4976 to schedule a telephone appointment.


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ATM/Debit Card/Checks: Can I continue to write checks or use my ATM/Debit card?

No. All accounts have been closed. You will receive a check from the FDIC within one week of the closing.


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Automatic Payments/Online Billpay: Will my automatic payments through Billpay continue?

No. All accounts have been closed; therefore, you should contact your creditors to make other arrangements.


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Brokered Deposits/Deposit Broker: I am a deposit broker or I have brokered deposits. What do I need to do?

Insured brokered deposits will be paid off when the insurance determination is complete. The FDIC offers an online 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 in a failed FDIC-insured institution. Please read the following Deposit Broker's Processing Guide completely before contacting the FDIC with questions:

Deposit Broker's Processing Guide (www.fdic.gov/deposit-brokers-processing-guide)

Should you have any questions regarding the completion of required affidavits or declarations on behalf of your client, please call 1-800-889-4976 and indicate you have a form completion question.

If you are a customer who has a Centennial Bank deposit through a broker, you must contact your broker with any questions. Once the FDIC receives a balanced investor file along with all the required documentation, from your broker, your insured funds will be wired to them on your behalf.


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Checks not honored: A merchant will not honor my check. What can I do?

All checks will be returned and stamped “Closed by Regulators”. This document is a letter (https://www.fdic.gov/bank-failures/return-checks-letter-1) you can provide to your creditors explaining that checks were returned through no fault of your own due to the bank closing, and this is no reflection on you.


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Claim Account(s): How do I claim my account(s)?

You will receive a check from the FDIC within one week of the closing mailed to your address of record with Centennial Bank. Please be advised that this money will be turned over to your state as unclaimed property if this check is not cashed within 18 months. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer’s office or office of unclaimed property.


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Customer Impact: How does this failure affect me?

All accounts have been closed, and you will receive a check from the FDIC within one week of the closing. It will be mailed to your address of record with Centennial Bank.

If you had a loan with the bank, continue to make your checks payable to Centennial Bank and mail to the same address you have used in the past until you are instructed otherwise.


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Direct Deposits, Social Security: What will happen to my direct deposits?

All accounts have been closed; however, the FDIC has arranged for recipients of federal government (ACH) direct deposits made by the US Treasury including but not limited to Social Security, Supplemental Security Income, Civil Service Retirement, Railroad Retirement, Veterans Administration, and Income Tax Refunds to be redirected to Zions First National Bank, Salt Lake City, UT. You will need to visit a branch of Zions First National Bank to obtain your funds. You may contact them at 1-888-874-0619.


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Early withdrawal penalty: Will I incur an early withdrawal penalty if I close my CD before maturity?

Your CD will automatically be closed, and you will receive a check from the FDIC within one week of the closing. You will NOT be assessed an early withdrawal penalty.


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Final Statement: How will I get my final account statement(s) from Centennial Bank

You will receive a final statement within one week of the closing mailed to your address of record with Centennial Bank.


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Interest: Will I continue to earn interest at the same rate?

All interest on insured deposits accrued through Friday, March 5, 2010, will be paid at your same rate. This will be included in the check you will receive from the FDIC within one week of the closing.


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Interest Checks/Cashier's Checks: Can I cash my interest check or cashier's check?

No, these checks will not clear; Interest Checks that have not cleared will be replaced with a new check issued by FDIC.

Cashier’s checks, certified checks, money orders meet the definition of noninterest-bearing transaction accounts. Under the Temporary Liquidity Guarantee Program, noninterest-bearing transaction accounts are fully insured. These items may be exchanged for a replacement check by contacting the FDIC at 1-800-889-4976.


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Internet Connection: Will my Internet connection to Centennial Bank work?

All accounts have been closed, and you will no longer have access to the website.


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IRAs: What if I have an Individual Retirement Account (IRA)? Will my savings still be insured?

You will receive a separate check from the FDIC for your IRA account, up to $250,000. You have 60 days to roll this over into another retirement vehicle. You should consult IRS Publication 590 and/or your tax advisor concerning the possible tax consequences of such distribution. IRS Publication 590 may be obtained by contacting your local IRS office or via the Internet at www.irs.gov.


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Lose Any Money: Will I lose anything on my deposit account?

Principal and interest on insured accounts, through Friday, March 5, 2010, are protected by the FDIC, to at least $250,000. Certain entitlements and different types of accounts can be insured in excess of the $250,000.

If you have more than $250,000 in your interest bearing account (or $250,000 in your IRA), or if the total of your related interest-bearing accounts exceeds $250,000, your accounts may require review by an FDIC Claim Agent. All accounts that appear to be related are reviewed to determine ownership and insurance coverage. See question number one for information regarding forms you may need to complete to expedite this process.


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Outstanding Checks: What will happen to the checks which have not cleared my account?

Checks that were drawn on Centennial Bank that did not clear before the institution closed will be returned indicating “Closed by Regulators”. This document is a letter (www.fdic.gov/bank-failures/return-checks-letter-1) you can provide to your creditors explaining that checks were returned through no fault of your own due to the bank closing, and this is no reflection on you. You should contact your vendors as soon as possible.


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Records/Account Histories: What if I need information regarding my account during the time Centennial Bank was in business?

Please contact the FDIC at 1-800-889-4976 to request a copy of your records.


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Tax Reporting - 1098/1099s: Who will send my 1098 and/or 1099 information after the end of the year?

The FDIC will be responsible for mailing your 1099 tax information. Your 1098 reporting will be done by the FDIC or the servicer of your loan. You will be notified of any changes in ownership or servicing of your loan.


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Uninsured: Will I collect my uninsured deposits?

If you have a loan in the same name as your uninsured deposit account, it may be possible to offset your uninsured amount against your loan. You should discuss this with your claim agent during your appointment.

If it is determined that you have some uninsured funds, the FDIC will mail you a Receivership Certificate. This certificate entitles you to share proportionately in any funds recovered through the sale of the assets of Centennial Bank. You may eventually recover more of your uninsured funds as assets are liquidated.

When a financial institution is closed, and the Federal Deposit Insurance Corporation ("FDIC") is appointed as receiver, one of FDIC's responsibilities is to sell the institution's assets to pay the depositors and its creditors. The money generated by the sale of these assets will flow through the Receivership, and periodic dividend payments will be made to proven claimants when excess cash is available. For an explanation of the dividend process, go to FDIC Dividends from Failed Banks (https://closedbanks.fdic.gov/dividends/).

Of course, you will receive immediate full payment for your insured amount by check directly from the FDIC.

If you have a deposit through a broker, your insured funds will be wired to your broker on your behalf once the FDIC receives all required documentation from your broker.
 


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Wire Transfer: Can funds be wired to me?

No, regretfully, we cannot wire your funds directly for individual depositors.


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LOAN QUESTIONS

Automatic Payments: Will my automatic payment still occur on its assigned date?

No. All accounts have been closed. You should contact your loan officer or the FDIC at 1-800-889-4976 to make other arrangements for your loan payments.


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Construction Loan Draws: Will construction draws continue? Will my project be completed?

Each loan is being reviewed independently. These will be determined on a case-by-case basis. For answers to all loan related questions, please contact your loan officer or the FDIC at 1-800-889-4976.


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Construction Loan Voucher Control: Will my subcontractors be paid as before?

For answers to all loan related questions, please contact your loan officer or the FDIC at 1-800-889-4976.


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Escrows: Will you continue to pay my escrows?

All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance were not paid, please contact your loan officer or the FDIC at 1-800-889-4976.


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Fees: Are there any changes to fees or charges due to this event?

No, there are no additional charges as the bank is closed.


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Foreclosures: Will the FDIC continue foreclosures in process?

At this point, we have suspended all foreclosure actions in order to evaluate the loans and the borrower’s ability to repay. It is our intention to sell all loans, and it will be up to the new owner to determine the best method of collection on the loan. There may be instances where we will continue with the foreclosure process, but this will be done on a case-by-case basis.


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Lender and contact names: Who is my lender and has my loan contact changed?

Your loan is currently owned by the FDIC and is being serviced by all of the same personnel with whom you have worked in the past. All prior contacts remain the same. For answers to all loan related questions, please contact your loan officer or the FDIC at 1-800-889-4976.


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Loan Sales: Will my loan be sold?

Your loan may be sold at a future undetermined date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer will be, you have the right to refinance your loan with another lender without prepayment penalty.


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Line of Credit Advances – Home Equity: Can I continue to perform advances on my line of credit?

No. All lines of credit, including Home Equity Lines of Credit (HELOCs), have been suspended. You should contact another financial institution to discuss establishing a borrowing relationship.


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Loan Application in Process: I have a loan currently in process. How is my loan impacted?

For answers to all loan related questions, please contact your loan officer or the FDIC at 1-800-889-4976.


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Loan Sweeps: Will my loan sweep be discontinued?

Yes. Sweeps are discontinued. For answers to all related loan questions, please contact your loan officer or the FDIC at 1-800-889-4976.


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Overdraft Line of Credit: Will my overdraft line of credit continue to cover my overdrafts?

No. All accounts have been closed.


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Payments: How and where do I make my payments?

You should continue to make your payments as agreed. Make checks payable to Centennial Bank and utilize the same payment address used previously.


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Pre-payment Penalty: If I refinance with another lender, will my pre-payment penalty be waived?

Any pre-payment penalty will be waived as long as FDIC as Receiver for Centennial Bank has control of the asset, and the borrower obtains refinancing of the outstanding balance on the account with another financial institution.


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SBA Application in Process: What will happen to my SBA loan application in process?

The FDIC as Receiver for Centennial Bank will not be originating any new loans. If your loan has been approved by the SBA, but is not yet funded, please contact the FDIC at 1-800-889-4976.

If your loan is in process, but is not yet approved by the SBA, we will release your SBA package on file with us to you. You will need to apply with another SBA-approved lender. Please contact your loan officer to arrange to retrieve your application from the bank.
 


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What Happens Now: What will happen to my loan?

Each loan is currently being reviewed independently to determine the best action for that individual loan. Your loan may be sold at a future date. If that occurs, you will be notified in advance through written correspondence. If you are concerned about whom your future lender or servicer may be, you have the right to refinance your loan with another lender.


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GENERAL QUESTIONS

All-Deposit Transfer versus Insured Deposit Transfer: Why do all deposits, insured and uninsured, pass is some transactions but not in others?

When a buyer cannot be found for a failed bank, the FDIC honors its obligation to insured depositors by mailing an insurance check.


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FDIC Insurance: How can I find out more about Federal Deposit Insurance rules?

You may access our website, which contains deposit insurance information and an Electronic Deposit Insurance Estimator (EDIE): www.fdic.gov. At the website,

  1. Click on Deposit Insurance
  2. Click on "Are my deposits insured?"
  3. Click on "Your Insured Deposits" (for a comprehensive guide)
  4. Click on "EDIE" (to calculate your insurance coverage)

You may also order any FDIC publication:

FDIC
3501 North Fairfax Drive 
Room E-1002
Arlington, VA 22226
publicinfo@fdic.gov


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

Please contact the Office of Public Affairs:

Greg Hernandez
1-202-898-6984
ghernandez@fdic.gov


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

Beginning Monday, March 8, 2010, please call the Ogden location of the bank at 1-801-475-7000 as soon as possible to make an appointment to clear the contents of your safe deposit box. Please be advised if you do not clear your safe deposit box, the box will be drilled under dual control. The contents will be escheated to your state as unclaimed property in accordance with state law. You will receive a letter at the address listed on the bank’s records prior to your box being drilled. Unclaimed property can be located by visiting www.missingmoney.com or contacting your state treasurer’s office or office of unclaimed property.


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Shareholders: I am a shareholder in Centennial Bankshares, Inc. What happens to my shares?

The Centennial Bank had no publicly owned stock. Equity shareholders were invested in the holding company, Centennial Bankshares, Ogden, UT, and not in the bank. Please do not file a claim with the Receiver. Instead, contact the holding company’s registered agent with any questions you may have:

Centennial Bankshares, Inc.
4605 S. Harrison Boulevard
Ogden, UT 84403


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Unpaid Bill: I did some work for Centennial Bank and have not yet been paid. What should I do?

A Proof of Claim (POC) form will need to be completed. POC’s can be found on the FDIC website (www.fdic.gov) or you can request one to be sent to you by calling 1-949-208-6700. Send completed POC, supporting documents, and any other documentation that supports your claim to:

FDIC as Receiver for Centennial Bank
1601 Bryan Street
Dallas, TX  75201-3479
Attention: Claims Agent


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What happened? Why did the bank fail?

Centennial Bank was closed by the Utah Department of Financial Institutions. An assuming bank could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing checks for their insured amount(s). These checks should be received within one week of the closing.


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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/resources/resolutions/bank-failures/failed-bank-list/centennial-ut.html

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Last Updated: August 23, 2012