December 2, 2016

The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Xavier-Tibod Bank, Inc. (A Microfinance Rural Bank) from doing business in the Philippines. Under Resolution No. 2133.A dated December 1, 2016, the MB 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 December 2, 2016.

Xavier-Tibod Bank is a two-unit rural bank with Head Office located on Pabayo St., Divisoria, Cagayan de Oro City (Capital), Misamis Oriental. Its other banking office (OBO) is located along National Highway, Brgy. Poblacion, Salay, Misamis Oriental. Based on the Bank Information Sheet filed by the bank with the PDIC as of June 30, 2016, Xavier-Tibod Bank is owned by Milamdec Foundation, Inc. (40.70%), Milagros P. Ortigas (15.41%), Robert L. Tan (12.36%), Teresita L. Barcelon (9.09%), Salay Handmade Paper Industries, Inc. (6.15%), Anselmo B. Mercado (3.62%), Alejandro P. Ortigas (2.96%), and Ma. Isabel R. Veloso (2.96%). The Bank's President is Milagros P. Ortigas and its Chairman is Edgardo D. Layug.

Latest available records show that as of September 30, 2016, Xavier-Tibod Bank had 918 accounts with total deposit liabilities of PHP7.9 million. Total insured deposits amounted to PHP7.7 million involving 97.8% of total deposit accounts.

PDIC assured depositors that all valid deposits and claims 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 Xavier-Tibod Bank or acted as co-makers of these obligations. Depositors have to ensure that they have complete and updated addresses with the bank. They may update their addresses until December 9, 2016 using the Mailing Address Update Forms to be distributed by PDIC representatives at the bank premises.

For depositors who are required to file claims for deposit insurance, the schedule of claims settlement operations will be announced as soon as possible through posters in the bank premises and in other public places, the PDIC website, www.pdic.gov.ph, and official Facebook account. PDIC also reminded borrowers to continue paying their loan obligations with the closed Xavier-Tibod Bank and to transact only with designated PDIC representatives at the bank premises. For more information on the requirements and procedures for filing claims and settlement of loan obligations, all depositors and borrowers of the bank are enjoined to attend the Depositors-Borrowers' Forum on December 14, 2016.

Depositors may communicate with PDIC Public Assistance personnel stationed at the bank premises or call the PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631, or send their e-mail to pad@pdic.gov.ph. Depositors outside Metro Manila may also call PDIC at its Toll Free Hotline at 1-800-1-888-PDIC (7342). Inquiries may also be sent via private message to the official PDIC Facebook account at www.facebook.com/OfficialPDIC.

Xavier-Tibod Bank in Cagayan de Oro City, Misamis Oriental.

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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 permanent and continuing 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.