Zions First National Bank will assume all insured deposits of Home Savings Bank and will conduct business with customers of the closed bank starting Monday, March 2, the Resolution Trust Corp. (RTC) announced Friday.
In addition to $9.4 million in insured deposits, Zions will also purchase $4.5 million of Home Savings Bank's assets with no putback options. The assets consist of cash and cash equivalents.Home Savings' only office will reopen as an office of Zions and will operate according to its normal schedule. All insured deposits will continue to earn interest at their contractual rates for 14 days unless withdrawn. After the 14-day period, Zions can establish the interest rates.
"The RTC decided to arrange an insured deposit transfer because no bids were received for a purchase and assumption transaction," the RTC said in a press release Friday.
Of 264 potential purchasers, Zions alone proposed a bid for the transfer of insured accounts, RTC officials said in a press release.
Depositors whose insured accounts were transferred to Zions can continue with the bank but should plan to visit the institution within the next few weeks to discuss the continuation of specific services. In the interim, all checks drawn on Home Savings Bank accounts will continue to be honored up to the insurance limit.
Depositors are also entitled to withdraw funds in certificate accounts without an early withdrawal penalty, according to the press release.
Of Home Savings' $9.5 million in liabilities, $100,000 are secured liabilities that will not be transferred to Zions.
In addition, of the $7.5 million in assets, Zions is purchasing $4.5 million, while the RTC is retaining approximately $3 million that it will sell to cover an estimated $4.9 million advance to Zions to facilitate the transaction.