CAMBRIDGE, Md.- If you are a Bank of the Eastern Shore customer, you will need to take some steps to get your finances reorganized.
The Dorchester County-based institution was shut down Friday evening by the Maryland Commissioner of Financial Regulation. Financial regulators said the bank was hit hard by the economic and real estate downturn.
The FDIC announced that it has opened a temporary bank called the Deposit Insurance National Bank of Eastern Shore to allow depositors access to their insured deposits and time to open accounts at other insured institutions. The main office and all branches of Bank of the Eastern Shore reopened on Monday, April 30. The DINB will maintain Bank of the Eastern Shore's normal business hours thereafter, until May 25.
The FDIC said banking activities, such as writing checks and using ATM and debit cards, can continue normally for former customers of Bank of the Eastern Shore until May 14. Direct Deposit, however, will end on May 18. Bank of the Eastern Shore official checks will continue to clear and will be issued to customers closing accounts.
The FDIC said all insured depositors of Bank of the Eastern Shore are encouraged to transfer their insured funds to other banks during this transitional period. They may do so by asking their new bank to electronically transfer their deposits from the DINB or by writing checks for the amount in their accounts. For depositors who have not closed or transferred their accounts on or before May 25, the FDIC said it will mail checks to the address of record for the amount of the insured funds.
Customers with accounts in excess of $250,000 are advised to contact the FDIC toll-free at 1-800-591-2817 to set up an appointment to discuss their deposits. Customers who would like more information about the bank's closure can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/easternshore.html.
Beginning Monday, depositors of Bank of the Eastern Shore with more than $250,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage.
The FDIC as receiver will retain all the assets from Bank of the Eastern Shore for later disposition. Loan customers should continue to make their payments as usual, the FCIC said.
The cost to the FDIC's Deposit Insurance Fund is estimated to be $41.8 million. The Bank of the Eastern Shore is the 18th FDIC-insured institution to fail in the nation this year, and the first in Maryland. The last FDIC-insured institution closed in the state was K Bank, Randallstown, on Nov. 5, 2010.
