FDIC Insurance
On January 13, 2023, Farmers Bank became a Division of TowneBank, and the two banks became a single deposit institution under the FDIC. To provide a grace period for depositors, the FDIC permits separate insurance coverage for six months following mergers. After that time, deposits held under each trade name – Farmers Bank and TowneBank – will not be separately insured but will be combined to determine whether a depositor has exceeded the $250,000 federal deposit insurance limit.
Special FDIC Rule for CDs
| If... | And... | Then... |
|---|---|---|
| Farmers CD matures within 6 months after January 13, 2023 | is renewed for the SAME amount and the same term... | CD remains separately insured until the first maturity date after the 6-month period. |
| Farmers CD matures within 6 months after January 13, 2023 | is renewed for a DIFFERENT amount or term... | Separate coverage is provided only for the six months following the merger date. |
| Farmers CD does not mature within 6 months after January 13, 2023 | The CD will be separately insured until its maturity date. | |