FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF FOUNDERS BANK, NEW HAVEN, CONNECTICUT
FOR IMMEDIATE RELEASE
David Barr (202) 898-6992
The Board of Directors of the Federal Deposit Insurance
Corporation approved the assumption of the insured deposits of Founders
Bank, New Haven, Connecticut, by Centerbank, Waterbury, Connecticut.
Founders Bank was closed by John Burke, Connecticut Banking
Commissioner, on Friday July 28, 1995, and the FDIC was named receiver.
The failed bank's two offices will reopen as branches of
Centerbank beginning Monday, July 31. Founders Bank's depositors will
automatically become depositors of the assuming bank.
Centerbank will assume $72.7 million in approximately 5,000
deposit accounts. At the time Founders Bank failed, about $3.0 million
in 160 accounts exceeded the federal insurance limit of $100,000 and
will not be assumed by Centerbank.
The FDIC Board of Directors voted to make an advance payment to
uninsured depositors equal to 70 percent of uninsured claims.
Beginning Monday, uninsured depositors can call an FDIC claims agent at
the failed bank's main office in New Haven to arrange payment.
Centerbank will pay the FDIC a premium of $3.8 million for the
right to receive the failed bank's insured deposits and will purchase
$25.3 million of the failed bank's $78.7 million in total assets.
The FDIC notes that its claim on recoveries from the sale of the
failed bank's assets will have priority over non-depositor creditors of
the failed bank.