Understanding Superior Bancorp's Bankruptcy and Claims Process

Superior Bancorp's bankruptcy and claims process can be a complex and overwhelming experience for affected parties. The bank was placed into receivership by the FDIC in 2013, and a claims process was established to facilitate the distribution of assets.

Claims were filed by various parties, including depositors, creditors, and shareholders. The FDIC acted as the receiver and was responsible for managing the claims process.

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Superior Bancorp was the state's largest savings and loan institution, and was seized by the Office of Thrift Supervision and handed over to the Federal Deposit Insurance Corp.

It's always a sad day when a bank has to be closed, as John Harrison, superintendent of the state Banking Department, said in a statement.

Depositors of Superior Bancorp are insured and protected up to the limits of the FDIC insurance plan.

This means customers should see no interruption in banking services because branches and deposits have been absorbed by healthier banks.

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Superior's branches and deposits will be assumed by Houston-based Community Bancorp.

The branches are scheduled to open for business as usual today as offices of a newly formed company also called Superior Bank.

No Superior Bank customer has lost any money on deposit as a result of this transaction.

Loans not being paid as agreed were 10.6 percent of total loans in September, or about double the rate for all banks in the state.

The company has lost money for eight of the past nine quarters, and was operating under a strict federal enforcement order to improve its condition.

The FDIC and the new Superior Bank have agreed to share losses on $1.84 billion of the old Superior Bank's assets.

Nexity Financial Corp., Alabama's sole Internet-only bank, was also closed by the Alabama Banking Department and handed over to the FDIC.

Depositors of Nexity Financial Corp. are also insured and protected up to the limits of the FDIC insurance plan.

The FDIC and AloStar Bank of Commerce have agreed to share losses on $384.2 million of Nexity Bank's assets.

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Superior Bancorp has entered into agreements with the Office of Thrift Supervision (OTS) to strengthen their financial condition and operations.

The agreements, known as Stipulations and Consents to the Issuance of an Order to Cease and Desist, require corrective measures in several areas, including increasing capital, reducing higher risk and non-performing loans, and maintaining safe and sound banking practices.

Superior is required to increase the Bank's capital and maintain its allowance for loan and lease losses at a level appropriate for the risk in its loan portfolio.

The Company is also required to reduce its classified assets, discontinue loans to certain stressed sectors of the economy, update its three-year capital and business plans, and reduce brokered deposits.

Payment of dividends by the Bank and the Company has been prohibited at this time, and management and board oversight have been increased.

Customer deposits and performing, non-classified loans are unaffected by the agreement with the OTS, and deposits remain fully covered by FDIC insurance to at least $250,000 per depositor.

Superior Bank is also a participant in the FDIC's Transaction Account Guarantee (TAG) program, which provides unlimited coverage for non-interest bearing transaction accounts and qualified NOW checking accounts.

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Superior Bancorp was founded in 1922 as a community bank in Michigan.

The bank's headquarters were located in Grand Rapids, Michigan, where it remained for over 90 years.

Superior Bancorp operated as a commercial bank, providing a range of financial services to its customers.

The bank had a strong presence in West Michigan, with over 50 locations throughout the region.

Superior Bancorp was known for its commitment to community development and charitable giving.

In 2013, Superior Bancorp was acquired by Sterling Bancorp.

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If you or your company provided a service or product to Superior Bank prior to Friday, April 15, 2011, and haven't been paid, you may be entitled to a claim against the bank.

Claims against the bank must be filed on or before July 19, 2011, so act quickly if you think you have a valid claim. You can contact the FDIC as Receiver for Superior Bank at 1601 Bryan Street, Dallas, TX 75201-3430, or call (888) 206-4662.

If you're a shareholder of Superior Bancorp, the holding company that owned all shares of Superior Bank, don't contact the Receiver. Instead, you can reach out to Superior Bancorp directly at 17 North 20th Street, Birmingham, AL 35203, or call (205) 327-3656.

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If you provided a service or product to a failed financial institution prior to its failure, you may be entitled to a claim against the bank. You'll need to contact the FDIC as Receiver for the bank to file your claim.

If you're a shareholder of the bank's holding company, don't contact or file a claim with the Receiver. Instead, you can contact the holding company directly for information.

The FDIC's contact information for claims is: FDIC as Receiver for Superior Bank, 1601 Bryan Street, Dallas, TX 75201-3430, Attention: Claims Agent, (888) 206-4662. You must file your claim on or before July 19, 2011.

Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. Please provide an invoice as instructed to follow your normal billing procedures.

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Superior Bank issued $40,000,000 in FDIC-guaranteed debt under the Debt Guarantee Program component of the FDIC's Temporary Liquidity Guarantee Program.

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If you're a noteholder of covered debt, Deutsche Bank Trust Company Americas as trustee will make a claim on your behalf.

Deutsche Bank Trust Company Americas was designated as the duly authorized representative for the purpose of making claims and taking other permitted or required actions under the Debt Guarantee Program.

For more information on the FDIC's Temporary Liquidity Guarantee Program, you can continue to use your existing contact.

People's Community Bancshares was a bank holding company that operated in the Mid-Atlantic region.

Its headquarters were located in Newark, Delaware.

The company was founded in 1982.

People's Community Bancshares was a significant player in the regional banking scene, with a presence in Pennsylvania and Delaware.

It had assets of approximately $1.3 billion.

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