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Pennsylvania: FDIC Approves the Payout of Insured Deposits of NOVA Bank

 

Oct 29 - The FDIC approved the payout of the insured deposits of NOVA Bank, Berwyn, Pa. The bank was closed by the Pennsylvania Department of Banking and Securities, which appointed the FDIC as receiver.

The FDIC was unable to find another financial institution to take over the banking operations of NOVA Bank. The FDIC will mail checks directly to depositors of NOVA Bank for the amount of their insured money. As a convenience to depositors, the FDIC has made arrangements with National Penn Bank to accept the failed bank's direct deposits from the federal government, such as Social Security and Veterans' payments through Jan. 25, 2013. The seven National Penn Bank locations designated to service NOVA Bank's customers receiving federal government direct deposit payments are as follows: One Penn Center; East Falls; Norristown; Wynnewood; Paoli; Wayne; and Lionville.

Customers with questions about the transaction, including those with accounts in excess of $250,000, should call the FDIC toll-free at 800-830-3256. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/novabank.html.

As of June 30, 2012, NOVA Bank had approximately $483 million in total assets and $432.2 million in total deposits. The amount of uninsured deposits will be determined once the FDIC obtains additional information from those customers.

The FDIC as receiver will retain all the assets from NOVA Bank for later disposition. Loan customers should continue to make their payments as usual.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $91.2 million. NOVA Bank is the 47th FDIC-insured institution to fail in the nation this year, and the second in Pennsylvania. The last FDIC-insured institution closed in the state was American Eagle Savings Bank, Boothwyn, on Jan. 20, 2012.


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