August 1, 2016

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) approved to prohibit Rural Bank of Cabadbaran (Agusan), Inc. from doing business in the Philippines by virtue of MB Resolution No. 1317 dated July 28, 2016. It directed the Philippine Deposit Insurance Corporation (PDIC) as Receiver to proceed with the takeover and liquidation of the bank. PDIC took over the bank on July 29, 2016.

Rural Bank of Cabadbaran is a four-unit rural bank with head office located at Garame cor. Cabiltes Sts., City of Cabadbaran, Agusan del Norte. It has two branches located in Butuan City, Agusan del Norte and in Cagayan de Oro City, Misamis Oriental; and a micro-banking office located in Gingoog City, Misamis Oriental. Based on the Bank Information Sheet filed by the bank with the PDIC as of December 31, 2015, Rural Bank of Cabadbaran is owned by Mariano A. Tolentino (7.51%), Fabian P. Cong (6.05%), Generoso A. De Jesus (5.76%), Tito Y. Antonio (4.64%), Horacio C. Nable (4.23%), Veronica A. Nable (4.21%), Rosalinda F. Rodriguez (3.29%), Umberto A. Rodriguez (2.81%), Joaquin Miguel C. De Jesus (2.62%), Ma. Carmen A. Nable (2.55%), Rafael A. Rodriguez (2.31%), and Canuta A. Mortola (2.09%). The Bank's President is Horacio L. Soriano and its Chairman is Cayetano B. Serrano, Jr.

Latest available records show that as of March 31, 2016, Rural Bank of Cabadbaran had 8,471 accounts with total deposit liabilities of PHP201.2 million. Total insured deposits amounted to PHP153.7 million involving 99.3% of total deposit accounts.

PDIC said that during the takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of PHP500,000.00.

Depositors with valid deposit accounts with balances of PHP100,000.00 and below shall be eligible for early payment and need not file deposit insurance claims, except accounts maintained by business entities, or when they have outstanding obligations with Rural Bank of Cabadbaran or acted as co-makers of these obligations. Depositors have to ensure that they have complete and updated addresses with the bank. PDIC will start mailing payments to concerned depositors at their addresses recorded in the bank by the third week of August 2016.

Depositors may update their addresses until August 9, 2016 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises.

For depositors that are required to file deposit insurance claims, the PDIC will start claims settlement operations for these accounts not later than the third week of August 2016. Depositors are advised to be ready to present the original copy of their evidence of deposit such as savings passbook, certificate of time deposit, unused checks or latest bank statement; and two (2) original valid photo-bearing identification documents (IDs) which are basic requirements in filing deposit insurance claims. PDIC may require additional documents in the course of claims processing.

The PDIC also announced that it will conduct a Depositors-Borrowers' Forum on August 11-12, 2016. All depositors, borrowers and creditors of the bank are enjoined to attend the Forum to verify with PDIC representatives if they are eligible for early payment and the manner of paying their loan obligations with the bank. Those not eligible will be informed of the requirements and procedures for filing deposit insurance claims. The time and venue of the Forum will be posted in the bank's premises and announced in the PDIC website, www.pdic.gov.ph. Likewise, the schedule of the claims settlement operations, as well as the requirements and procedures for filing claims will be announced through notices to be posted in the bank premises, other public places and the PDIC website.

Rural Bank of Cabadbaran is the second bank to be ordered closed by the MB following the effectivity on June 11, 2016 of Republic Act No. 10846 that amended the PDIC Charter.

For more information, depositors may communicate with PDIC Public Assistance personnel stationed at the bank premises. They may also call the PDIC Toll Free Hotline at 1-800-1-888-PDIC (7342), the PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631, or send their e-mail to pad@pdic.gov.ph.

Rural Bank of Cabadbaran in Cabadbaran, Agusan del Norte.

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The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.