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FDIC Coverage for Your Deposit Accounts

Important Information About FDIC Coverage

When the deposit accounts of Wolverine Bank are acquired by Horizon Bank, the newly acquired deposits are separately insured from any other deposits a depositor may already have at Horizon Bank, the acquiring bank, for a set period of time. This grace period is intended to give depositors an opportunity to restructure their accounts in case the acquisition results in a depositor having deposits at the acquiring bank that exceed the insurance limit. The FDIC provides separate insurance coverage for deposits that are acquired following an acquisition in accordance with the following schedule:

  • Non-time deposits (e.g., checking, passbook savings, and MMDA accounts) acquired by a bank are separately insured for six months after the date of the acquisition.

  • Time deposits (e.g., certificates of deposit) acquired by a bank are separately insured until the earliest maturity date or six months after the acquisition date, whichever occurs later, subject to the following rules:

Time deposits that mature within the first six months are renewed for the same dollar amount (with or without accrued interest added to the principal amount) and for the same term as the original deposit are separately insured until the first maturity date after the expiration of the six-month period.

Time deposits that mature within the first six months and are renewed on any other basis, or time deposits that mature within the first six months and are not renewed and thereby become regular savings or demand deposits, are separately insured until the end of the six-month period.