WASHINGTON (AP) — Federal regulators have seized 3 banks, one each in Florida, Georgia and Tennessee, bringing to 31 the number of U.S. banks that have failed so far this year.
The Federal Deposit Insurance Corp. said Friday that it closed Putnam State Bank in Palatka, Fla., Security Exchange Bank, in Marietta, Ga., and The Farmers Bank of Lynchburg, in Lynchburg, Tenn.
(Note: The Tennessee Department of Financial Institutions news release on the Lynchburg bank is at the end of this post.)
The FDIC lined up other lenders to assume the deposits and assets of each of the banks.
News release from state Department of Financial Institutions:
NASHVILLE – The Tennessee Department of Financial Institutions (“Department”) took possession of Tennessee Commerce Bank, Franklin, Tennessee at 4:00 p.m. CST on January 27, 2012. The Department has appointed the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of Tennessee Commerce Bank.
The Department took possession of Tennessee Commerce Bank due to Tennessee Commerce Bank’s impaired capital, unsound condition and the bank’s inability to continue normal operations.
Through an agreement with the FDIC, deposit accounts of Tennessee Commerce Bank have been transferred to Republic Bank & Trust Company, Louisville, Kentucky and will be available immediately. Depositors of Tennessee Commerce Bank will automatically become depositors of Republic Bank & Trust Company. Depositors will be able to access their accounts at the former main office of Tennessee Commerce Bank during regular business hours. Customers of both banks should continue to use the existing office until Republic Bank & Trust Company can fully integrate the deposit records of Tennessee Commerce Bank. Additionally, the former depositors of Tennessee Commerce Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.
Since deposits transferred to Republic Bank & Trust Company, there will be no loss exposure to former customers of Tennessee Commerce Bank. The FDIC has established a website and a toll-free phone number to answer questions from depositors, creditors and other interested parties regarding the receivership of Tennessee Commerce Bank. Please refer to the FDIC’s website at http://www.fdic.gov/bank/individual/failed/tcb.html for further information regarding the details of the transaction. The toll-free number is 1-800-450-5668. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST, on Sunday from noon to 6:00 p.m., CST; on Monday from 8:00 a.m. to 8:00 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST.
The Department’s Commissioner, Greg Gonzales, reminds depositors that deposits for all Tennessee banks are insured by the FDIC up to $250,000. Special rules are in place for accounts held in trust status and joint accounts that may further expand deposit insurance coverage. Additional information on FDIC Deposit Insurance may be found at www.fdic.gov.