All 13 branches of Moline-based Valley Bank closed without warning by Illinois regulatory officials Friday, June 20, 2014.
The Federal Deposit Insurance Corporation (FDIC) reports Great Southern Bank will take over deposits previously held at Valley Bank. According to a spokesperson from the FDIC, all depositors of Valley Bank will become depositors of Great Southern Bank.
The Valley Bank closure happened because the bank failed, but it was unclear what specific events led to the failure.
"Typically, a bank is closed when it becomes critically undercapitalized or is unable to meet its obligations to depositors and others," according to the FDIC.
"No advance notice is given to the public when a financial institution is closed," said a statement about the closure from the FDIC. The statement said money in accounts Valley Bank will still be available to anyone who had funds deposited there.
"Checks that were drawn on Valley Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account," the statement said. "All outstanding checks will be paid against your available balance(s) as if no change has occurred."
ATMs, online banking, and debit card services will continue to work, and customers of Valley Bank are being advised to continue to use their current branch, and await notice that Valley Bank systems have been completely converted to Great Southern Bank. Direct deposits and automatic withdrawals will now happen through the new bank. Anyone with an outstanding loan from Valley Bank is still obligated to make payments as stated in the promissory note, and those payments should still be mailed to the same address.
Great Southern Bank is purchasing $375.4 million of the $454.4 million in total assets of Valley Bank, and the FDIC will handle the remaining assets.
For more information about Great Southern Bank, click here.
For more information from the FDIC about the closure of Valley Bank, click here.