Failed Bank Report: Claim FDIC Insured Deposits at Failed Banks

Horizon Bank - Pine City, MN

Horizon Bank unclaimed bank accounts

Horizon Bank unclaimed money

Horizon Bank missing money

Friday, June 26, 2009: Horizon Bank, Pine City, MN was closed by the Minnesota Department of Commerce. The Federal Deposit Insurance Corporation (FDIC) was named Receiver.

As of March 31, 2009, Horizon Bank had total assets of $87.6 million and total deposits of $69.4 million.

The FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of Horizon Bank.

All deposit accounts, excluding certain brokered deposits, have been transferred to Stearns Bank and are available immediately. On Saturday, June 27, 2009, the two former Horizon Bank locations reopened as branches of Stearns Bank N.A.

Transferred deposits will be separately insured from any accounts you may already have at Stearns Bank N.A. for six months after the failure of Horizon Bank.

All interest accrued through Friday, June 26, 2009, will be paid at your same rate; however Stearns Bank N.A. will be reviewing rates.

Stearns Bank National Association
4191 Second Street South
Saint Cloud, MN 56303
(800) 320-7262

Stearns Bank, N.A. paid a premium of 0.75 percent to acquire all of the deposits of the failed bank. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase approximately $84.4 million of assets. The FDIC will retain the remaining assets for later disposition.The FDIC and Stearns Bank, N.A. entered into a loss-share transaction on approximately $65.1 million of Horizon's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $33.5 million.

For additional information and assistance contact the FDIC at: 1-866-954-9531; or go to:

2009 FDIC Insured Failed Banks
Horizon Bank
600 Hillside Avenue SW
Pine City, MN 55063

Established on 6/1/1915 as
Kerrick State Bank

Assets: $88 million
Deposits: $69 million
Cost to FDIC: $34 million



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  Horizon Bank and have not received a notice, please contact:

Federal Deposit Insurance Corporation
Receiver: Horizon Bank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas 75201

Note: There was no publicly owned stock in Horizon Bank. You may be an equity shareholder in Pine City Bancorporation, Inc., Pine City, Minnesota, the holding company. Contact: Pine City Bancorporation, Inc., 600 Hillside Avenue SW , Pine City, MN 55063.

Consumer Alert

Unclaimed FDIC Insured Deposits

Note: There are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes ...

If an insured depositor fails to make a claim an insured or transferred deposit within 18 months after the FDIC initiates the payment of insured deposits, the transferee institution must refund the deposit to the FDIC, and all rights of the depositor against the transferee institution are barred.

The FDIC then remits the insured deposit to the custody of the unclaimed property administrator in the account owner's home state, unless that state declines to accept custody. Upon delivery, the FDIC is deemed to have made payment to the depositor, and all rights of the depositor against the FDIC are barred.

Most states allow claims in perpetuity, but there's a reversion clause. If a depositor does not claim the deposit delivered to the custody of the State within 10 years of the date of delivery, the deposit must then immediately be refunded to FDIC, and all rights of the depositor against the state are barred.

It's important to note that If a state declines to accept custody of the deposit - which they sometimes do - the depositor must claim the funds from the FDIC before the receivership is terminated, or all rights of the depositor with respect to the deposit are barred. Dividends for credits arising from uninsured portions of a deposit may, however, be claimed after the receivership is terminated if a dividend check was returned by the post office for a bad address.

Be aware that due to the number of mergers and acquisitions in the banking industry over the years, it is possible you or a deceased family member might well have an account at a failed bank and not know it. Additionally, unclaimed safe deposit boxes at closed branches may be drilled and the contents sold at auction just weeks after closing, so prompt action is advised.  For assistance go to: Unclaimed Account Search

History: Established on 6/1/1915 as Kerrick State Bank
06/1/2006: Changed name to Horizon Bank