Questions & Answers Regarding Your Deposits

Your deposits are covered by the Federal Deposit Insurance Corporation (FDIC). The FDIC provides resources to determine how much insurance you have and how to increase your coverage. You can visit their website directly at www.FDIC.gov. We also have the ability to triple your coverage by opening accounts at our sister banks, Anson Bank & Trust or Bank of Stanly.

The media is highlighting the closing of Indymac Bank in California and continues to talk about the number of potential bank failures that may occur over the next 12-24 months. The 80-some banks (which is less than 2% of the total banks in the U.S.) they continue to reference come from the FDIC watch list. A majority of these banks, much like Indymac Bank, focus on a single product line or have a number of loans that are considered to be of higher risk, or sub-prime.

Our bank has not participated in sub-prime lending programs or exotic mortgage loan structures like “pick-a-payment”; the type of programs that are being closely scrutinized and are receiving the blame for the credit crisis. The investments we make in loans are to residents and businesses in Cabarrus County and surrounding counties whose home values have held relative to the rest of the country.

Cabarrus Bank & Trust is strong! We maintain capital levels above what regulators consider well-capitalized. Also, we have outperformed the banking industry in general over the past couple of years.

The banking industry, which is federally insured and regulated, is safe and sound.

Federally regulated banks are required to employ underwriting practices to promote safe and sound operations and to avoid losses. When they do not operate appropriately, regulators will take immediate action and require corrective measures.

Cabarrus Bank & Trust and it’s holding company Uwharrie Capital Corp are regulated by:

• Federal Deposit Insurance Corporation (FDIC).
• North Carolina State Banking Commission.
• Federal Reserve (holding company regulator).

They are providing stability and growth. Having a safe and sound banking system to rely on shows the importance of the role banks play in our local communities and in our nation's economy. That is true regardless of their asset size, their charter or their business plan. The vast majority of federally regulated and insured banks today hold more capital than the law requires.

North Carolina Bankers Association President Thad Woodard says that the state’s banks remain strong according to an article in the Charlotte Business Journal. Cabarrus Bank & Trust maintains capital levels above what Regulators consider well-capitalized.

The Federal Reserve has acted to help restore liquidity by assuring everyone that they are responding to the problems in a measured way. Their action in regard to Bear Stearns is one example.

The Fed opened up its lending facility known as the “discount window” to Wall Street firms and is taking steps to restore liquidity to the markets.

The Office of Federal Housing Enterprise Oversight has reduced the capital surcharge imposed on Fannie Mae and Freddie Mac so they can buy additional home mortgages.

The Federal Housing Finance Board will allow the nation's 12 Federal Home Loan Banks to provide greater liquidity in the mortgage markets.

• Single Accounts (owned by 1 person), $250,000 per owner*

• Joint Accounts (2 or more persons), $250,000 per co-owner*

• Trust Accounts, $250,000 per owner per beneficiary subject to specific limitations and requirements*

• IRAs and certain other retirement accounts, $250,000 per owner.

* Recent legislation authorizing the increase in FDIC deposit insurance coverage limits makes the change effective through December 31st 2013.

Cabarrus Bank & Trust is also participating in the FDIC's Transaction Account Guarantee Program. This program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules. Under this program all non interest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount through June 30th, 2010.

The FDIC provides online resources to determine your coverage. Click here to visit their Insurance Calculator.

Cabarrus Bank & Trust is also participating in the FDIC's Transaction Account Guarantee Program. This program is in addition to and separate from the coverage available under the FDIC's general deposit insurance rules. Under this program all non interest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount through June 30th, 2010.

Yes. There are several ways that you can increase the amount of insurance that you have at Cabarrus Bank & Trust through the structure of your accounts. Click here to reference the FDIC website or visit your local Cabarrus Bank & Trust office to review how you may be able to increase your coverage.

You may also be able to receive additional coverage by opening accounts at one of our sister banks, Anson Bank & Trust or Bank of Stanly. By opening accounts at these banks you could potentially increase your insurance coverage. Your Cabarrus Bank & Trust Account Executive can help you with these options.

We are committed to delivering quality products and services and adhering to a high standard of customer care.