City of Clinton loses $83K in Centennial closure

(Salt Lake Tribune) The Federal Insurance Deposit Corp. has sent the city of Clinton a check for $250,000, but the Davis County suburb is still smarting over the $83,209 it may have lost when Centennial Bank of Ogden was shut down by regulators.

The closure came March 5, days before city leaders were prepared to approve a resolution to break up a $333,209 fund from its one certificate of deposit into smaller ones, which would be FDIC-insured.

Clinton does have one hope for recouping the lost thousands: The FDIC made the city eligible to receive a percentage of the profit to be made by liquidating and selling the assets of Centennial, which was closed after significant losses tied to real estate, construction and development loans.

That could mean getting back everything that was lost, or receiving a few thousand dollars, said Clinton City Manager Dennis Cluff, but "it could be months, and it may trickle in over a time period."

The lost money was from a cemetery care fund CD that was being saved so that in a few decades the interest generated could take care of cemetery maintenance, Cluff said. The lost funds won't affect any services provided now, he added.

The $83,209 in financial limbo was largely interest accumulated since the fund began in 2000 with about $56,000, Cluff said. The lost dollars weren't funded by taxpayers, but through fees received when cemetery plots were bought, he said.

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