A failed bank with several branches in North Georgia has been shut down by federal government.
The Federal Deposit Insurance Corporation confirmed on Friday that Guaranty Bank, which also owns BestBank, had been shut down by the Office of Comptroller of Currency. The FDIC entered into a purchase and assuming agreement with First-Citizens Bank & Trust Company which will immediately take over all deposits.
That means all depositors of Guaranty Bank or BestBank, regardless of where they conducted business, will automatically become depositors of First-Citizens.
The Guaranty Bank had been under orders by federal regulators since 2009 to improve its financial condition. The bank struggled to return to profitability and boost its capital to required levels. In 2012, Guaranty sold off its national Shelter Mortgage unit to bolster the bank's capital, but the boost was temporary. In the last 10 calendar years, Guaranty has posted a profit just twice, records from the FDIC show. Its worst calendar year loss was $52.6 million in 2009. In calendar year 2016, Guaranty lost $4.2 million.
The company has struggled over the years to recover from losses stemming from the housing and foreclosure crisis.
BestBank had 119 branches in five states with more than 30 across North Georgia - many in retail outlets such as grocery stores. The North Carolina-based First Citizens bank agreed to purchase $892.6 million of the failed bank's estimated $1 billion in total assets.
The BestBank locations in retail stores will not reopen and the ATMs will no longer be operational.
Customers with questions about the transaction should call the FDIC toll-free at 800-930-6827.
Guaranty Bank is the fifth FDIC-insured institution to fail so far this year.Channel : NetNewsJournalsNorth Georgia NetNewsCatster: Neida Streit