Columbian closes and Citizen's opens
5:45 p.m. Monday, August 25, 2008
Columbian Bank was shut down Friday, and re-opened this morning as Citizen's Bank and Trust. Citizens took over all four Columbian branches in Topeka.
"Yeah it's kind of scary. I brought all my money from the other bank and put it here, I opened two CD accounts and a money market," said a Columbian bank customer, Jay Sharma.
She just joined Columbian Bank about a month ago.
"I did check everything, but still I am kind of scared," said Sharma.
She showed me the paperwork the new Citizen's Bank gave her, showing her all of her money is still there, but not all customers are that fortunate.
One customer told me he had $180,000 in his Columbian Bank account. The Federal Deposit Insurance Corporation, or FDIC, only insures up to $100,000.
Richard Schmalzer is a spokesman for the FDIC. He told me they will help those who had more than $100,000 in their accounts.
"Various records of the institution that the FDIC will continue to be involved with as we resolve the affairs of Columbian," said Schmalzer.
But during the transition this weekend, we found some customers had problems getting their cash.
"I've tried every branch of the Columbian Bank, and I cannot zip any money. It says on my ticket, 'At this location, you're institution does not allow you to make this transaction at this location,' and I don't understand why they say you can zip the money. I have money but I can't get it," said Wayne Lay, a customer with Columbian Bank.
Why couldn't Lay get cash?
Schmalzer responded, "During the transitional period there was a $200 limit on a cash transaction, and that was the type of message that would occur, if a person attempted to pull cash greater than that."
The bank lifted that limit Monday morning.
Citizen's Bank says customers won't have to worry about electronic filings, like Direct Deposit.
The FDIC would not explain why the bank closed, but Columbian reported $92 million in delinquent loans in the second quarter. It blamed the real estate market.
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