FOR IMMEDIATE RELEASE
December 18, 2009
Contact: Jason Moon 517-335-1700
www.twitter.com/miofir

LANSING - Citizens State Bank in New Baltimore, MI was closed today by the Office of Financial and Insurance Regulation (OFIR), which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of New Baltimore (DINB of New Baltimore), which will remain open for approximately 45 days to allow depositors access to their insured deposits and time to open accounts at other insured institutions. At the time of closing, the receiver immediately transferred to the DINB of New Baltimore all insured deposits of Citizens State Bank, New Baltimore except for certificates of deposit (CDs) and individual retirement accounts (IRAs). The receiver also transferred to the DINB all secured public unit deposits.

"No insured depositor will lose a penny," OFIR Commissioner Ken Ross said. "Most Michigan banks remain strong despite a challenging economic environment."

Huntington Bank will provide operational management of the DINB of New Baltimore under a contract with the FDIC. The main office and all branches of Citizens State Bank, New Baltimore will open as usual on Saturday, December 19. Banking activities, such as direct deposit and writing checks, ATM and debit cards, can continue normally for former customers of Citizens State Bank, New Baltimore during the transition period. It is also important to note that Citizens State Bank, New Baltimore official checks will continue to clear and will be issued to customers closing accounts.

All depositors of Citizens State Bank, New Baltimore are encouraged to transfer their insured funds to other banks as soon as possible. They may do so by asking their new bank to electronically transfer their deposits from the DINB of New Baltimore or by writing checks for the amount in their accounts. At the end of the transition period, the FDIC will mail checks to the address of record for depositors who have not closed or transferred their accounts during the transition period.

Under the FDI Act, the FDIC may create a deposit insurance national bank to ensure that depositors have continued access to their insured funds where no other bank has agreed to assume the insured deposits. The DINB allows for uninterrupted direct deposits and automated payments from customers' accounts for customers with checking and NOW accounts and allows them time to find another institution with which to do business.

Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-800-350-2746 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9 p.m., on Saturday from 9 a.m. to 6 p.m., on Sunday from noon to 6 p.m., and thereafter from 8 a.m. to 8 p.m. Due to the Christmas Holiday, the toll-free number will not be operational between the hours of 3 p.m., Thursday, December 24, and 8:00 a.m., Monday, December 28. At that time the toll-free number will resume its normal hours.

Customers who would like more information on today's transaction should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/citizensstate-mi.html

Beginning Monday, December 21, 2009, depositors of Citizens State Bank 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 Citizens State Bank, New Baltimore for later disposition. Loan customers should continue to make their payments as usual until they are provided other direction by the FDIC.

On September 30, 2009, Citizens State Bank, New Baltimore, had $168.6 million in total assets, $157 million in deposits, net loans of $126.7 million, and a leverage capital ratio of 1.23%.

Citizens State Bank, New Baltimore was wholly owned by Citizens State Bancorp, Inc. and was headquartered in New Baltimore, Michigan. It operated branches in Anchorville, Chesterfield Township, Clinton Township and Shelby Township. The bank opened on April 5, 1922, and was closed today after the Ingham County Circuit Court granted the Commissioner's petition to appoint the FDIC as receiver. The New Baltimore bank was not affiliated with, and should not be confused with, other Michigan banks whose names contain the word "Citizens."

Citizens State Bank, New Baltimore, is the 136th bank closure to occur nationally this year. In Michigan, only thirteen banks, including the New Baltimore bank, have closed since 1970.

Useful consumer information can also be found at:

• Your Insured Deposit: www.fdic.gov/deposit/deposits/insured/index.html
• Electronic Deposit Insurance Estimator: http://www.fdic.gov/edie/

To view the order appointing the FDIC receiver for Citizens State Bank, New Baltimore, visit: http://www.michigan.gov/documents/dleg/order_12-09_305047_7.pdf

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