August 21, 2009: CapitalSouth Bank,
Birmingham, AL was closed by the Alabama State Banking Department. The
Federal Deposit Insurance Corporation was named Receiver.
As of June 30, 2009, CapitalSouth Bank had total assets of $617 million and total deposits of approximately $546 million.
The FDIC entered into a purchase and assumption agreement with IBERIABANK, Lafayette, Louisiana, to assume all deposits except $3.6 million in brokered deposits of CapitalSouth Bank.
All non-brokered deposit accounts have been transferred to IBERIABANK and are available immediately. On Monday, August 24, 2009, the ten former CapitalSouth Bank locations reopened as branches of IBERIABANK.
The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits. Transferred deposits will be separately insured from any accounts you may already have at IBERIABANK for six months after the failure of CapitalSouth Bank
All interest accrued through Friday, August 21, 2009, will be paid at your same rate; however IBERIABANK will be reviewing rates. Checks will be processed as usual. Your automatic direct deposits and withdrawals will be transferred automatically to your new bank. If you had a loan with CapitalSouth Bank, you should continue to make your payments as usual, until further notice.
In addition to assuming all of the deposits of the failed bank, IBERIABANK agreed to purchase $589 million of the failed bank's assets. The FDIC and IBERIABANK entered into a loss-share transaction on approximately $499 million of CapitalSouth Bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $151 million.
For additional information and assistance contact the FDIC at: 1-877-894-4710; or go to: http://www.fdic.gov/bank/individual/failed/capitalsouth.html
|2009 FDIC Insured Failed Banks|
2340 Woodcrest Place
Birmingham, AL 35209
|Assets: $617 million|
|Deposits: $546 million|
|Cost to FDIC: $151 million|
Established on 10/1/1975 as Citibanc Of Alabama, Fultondale, Alabama
06/20/1984 - Changed name to Bank Of Alabama
09/30/2005 - Changed name to Capitalsouth Bank
11/03/2006 - Acquired Capital Bank in Montgomery, Alabama
09/15/2007 - Acquired Monticello Bank in Jacksonville, Florida
Unclaimed FDIC Insured Deposits
There are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes.
Be advised that not every depositor with funds in a failed bank will receive notification from the FDIC, and there are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes.
Beneficial owners of fiduciary accounts, including Uniform Transfers To Minors accounts, escrow accounts, Interest on Lawyer Trust Accounts (IOLTA), and deposit accounts obtained through a broker (Brokered Accounts) will not be contacted by the FDIC.
This is because these accounts are on the failed bank's records in the name of the fiduciary, not the individual owner. The FDIC does not have access to ownership information, and therefore will not contact individual depositors. It is the responsibility of the broker or other fiduciary to initiate a claim.
In addition, accounts transferred to successor institutions may have lower interest rates and can lose insurance coverage, after a period of time. If an individual already has accounts at a successor institution, perhaps unknowingly in the case of brokered deposits, the insurance limit may be exceeded and funds could be lost in a subsequent receivership.
Finally, in the worst case scenario, by law accounts which go unclaimed for an extended period may be time barred, and safe deposit boxes can be drilled and the contents sold at auction.
It is important to understand you may have an account at a failed institution and not know it, either because you were a depositor at a bank acquired by an institution that subsequently failed, or if you or a deceased family member are the beneficial owner of a brokered fiduciary account.
For assistance tracing and reclaiming a lost bank account or safe deposit box go to: Unclaimed Money Search
Creditor Claims: Claims
against failed financial institutions occur when bills sent to the
institution remain unpaid at the time of failure. Shortly after the
failure, the FDIC sends notices directly to all known service providers to
explain the claim filing process. If you provided a service for CapitalSouth
Bank and have not received a notice, please contact:
Federal Deposit Insurance Corporation
In accordance with Federal law allowed claims will be paid, after administrative expenses, in the following order of priority: Depositors, General Unsecured Creditors, Subordinated Debt and Stockholders.