The FDIC has announced that three more banks have been added to the list of bank failures for 2009.  These three banks bring the total number of bank failure in 2009 to six.  Today, the FDIC announced it has become the receiver of MagnetBank in Salt Lake City, Utah and Suburban Federal Savings Bank of Crofton, Maryland and Ocala National Bank of Ocala, Florida.

For Suburban Federal Savings Bank, all deposit accounts have been transferred to Bank of Essex in Tappahannock, VA.  As of this Saturday, January 31, 2009, the former Suburban Federal Savings Bank locations will reopen as branches of Bank of Essex and all accounts will be available immediately.  Customers of Suburban Federal Savings Bank will have checks processed as usual.  All outstanding checks will be paid against available balances as if no change had occurred and all ATMs and online services remain operational.

The accounts of Ocala National Bank, with the exception of brokered deposits, have been transferred to CenterState Bank of Florida.  As with the Suburban Federal Savings Bank process, all accounts function as normal.  ATMs are operational, checks are still good and the Ocala branches open as CenterState branches on Monday.

Unfortunately, the FDIC couldn’t find another bank that wanted MagnetBank.  Since another bank could not be located, the FDIC is fulfilling its obligation to insured depositors by mailing checks for their insured amounts.  Bank customers that hold CDs will automatically have them closed, and the CD account holder will receive a check up to the insured amount from the FDIC. The bank CD account holder are not assessed early withdrawal penalties.

The other three banks that failed earlier this year were National Bank of Commerce in Berkeley, Illinois and Bank of Clark County of Vancouver, Washington and 1st Centennial Bank of Redlands, California.

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