PhillyInc: Deadline is here for Nova Bank's creditors to file claims

Posted: January 31, 2013

When Nova Bank failed in October, no bank was willing to buy the deposits and keep the branches operating. So the Federal Deposit Insurance Corp. closed the 12 Nova branches in Philadelphia and Chester, Delaware, Gloucester, and Montgomery Counties.

Just because the Nova branches stand vacant, however, doesn't mean the final chapter has been written.

As receiver, the FDIC must tie up all the loose ends. One deadline occurs Wednesday, which is when all creditors of the bank (not the bankrupt holding company) must submit their non-deposit claims in writing to the FDIC. At this point, the only way to make that deadline would be to use an online claim form available at www2.fdic.gov/NDCWeb.

Depositors should not file claims using that service. In fact, fully insured depositors should have long ago received their money from the FDIC.

Loans made by Nova live on, but the FDIC doesn't want to keep them. So it has tapped an Oklahoma City firm to sell off $85 million in loans through a bidding process.

First Financial Network Inc. said it would offer the loans in two batches. The first portfolio of commercial real estate loans totals about $20 million. The second portfolio is composed of about 500 other types of loans, totaling about $65 million.

Bids are due March 5.

Business must be good for First Financial since it says it has sold billions of dollars of loans in the secondary market since 1989.

More branch closings

Beneficial Bank, which has outlasted other homegrown brands to become the biggest independent bank based in Philadelphia, is seeking to close three of its 62 branches.

The Center City-based bank filed applications with the Pennsylvania Department of Banking and Securities to discontinue offices at 826 E. Allegheny Ave., Philadelphia; 640 Cowpath Rd., Montgomeryville; and 200 Tuckerton Rd., Medford.

According to data filed with the FDIC, those three branches held a total $84.6 million in deposits as of June 30, or about 2 percent of the $3.89 billion of the bank's total deposits.

Beneficial closed three other branches in 2012 after it acquired the five-branch St. Edmond's Federal Savings Bank. It retained only the former St. Edmond's branches in Deptford and Roxborough.

Even as it prepares to close branches, Beneficial apparently is working to open some new locations.

During a presentation at a banking conference sponsored by Sandler O'Neill & Partners in November, the bank said it intended to open four branches in 2013, including one under construction on Baltimore Pike in Springfield, Delaware County.


Contact Mike Armstrong

at 215-854-2980 or marmstrong@phillynews.com, or @PhillyInc on Twitter. |Read his blog, "PhillyInc,"

at www.phillyinc.biz.

 

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