Federal agency shuts down BestBank branches in Michigan
(WJBK) - Guaranty Bank, Milwaukee, Wisconsin, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Guaranty Bank.
Guaranty Bank did business as BestBank in Georgia and Michigan.
On the bank's website it said:
All deposit accounts have been transferred to First-Citizens Bank & Trust Company, Raleigh, NC. Guaranty Bank had 119 branches in 5 states, most of which were in grocery stores (107 total). The branches in grocery stores will not be reopening. The 12 brick-and-mortar locations in Illinois, Minnesota, and Wisconsin will reopen as branches of First-Citizens Bank & Trust Company during their normal business hours. All depositors of Guaranty Bank, regardless of where they conducted business, will automatically become depositors of First-Citizens Bank & Trust Company. For more information on First-Citizens Bank & Trust Company, visit us at https://www.firstcitizens.com.
Guaranty Bank had 119 branches in five states, 107 of which were in retail outlets, such as grocery and general merchandise stores. The branches in retail outlets will not be reopening. The 12 brick-and-mortar locations in Illinois, Minnesota, and Wisconsin will reopen as branches of First-Citizens Bank & Trust Company during their normal business hours. All depositors of Guaranty Bank, regardless of where they conducted business, will automatically become depositors of First-Citizens Bank & Trust Company.
Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers in the branches being assumed by First-Citizens Bank & Trust Company should continue to use their existing branch until they receive notice that systems changes have been completed to allow First-Citizens Bank & Trust Company branches to process their accounts. For a complete list of branches, visit https://www.fdic.gov/guaranty-best-branches.
This evening and over the weekend, all depositors of Guaranty Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
Depositors with accounts at the branches not reopening can continue to use electronic means for conducting their banking business, including online and mobile banking. ATM machines on-site at the branches in retail outlets will not be operational.
Michigan locations affected are:
Canton (Kroger, 45540 Michigan Ave)
Dearborn (Kroger, 23303 Michigan Ave)
Dearborn Heights (Kroger, 26400 Ford Road)
Detroit (Glory Foods, 19150 Telegraph)
Farmington Hills (Hartland Market, 33250 W. 12 Mile)
Harper Woods (Family Foods, 19230 Harper)
Highland Park (Glory Foods, 14100 Woodward Ave.)
Livonia (Kroger, 29555 Plymouth Rd)
Roseville (Kroger, 26130, Gratiot)
Southfield (Kroger, 23675 Greenfield)
Sterling Heights (Walmart, 33201 Van Dyke)
Troy (Kroger, 3125 John Road)
Westland (Kroger, 36430 Ford Road)
Westland (Kroger, 31300 Michigan Ave)
Ypsilanti (Kroger, 3200 Carpenter Road)
Ypsilanti (Kroger, 2010 Whitaker Road)
As of March 31, 2017, Guaranty Bank had approximately $1.0 billion in total assets and $1.0 billion in total deposits. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase $892.6 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
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Customers with questions about the transaction should call the FDIC toll-free at 800-930-6827. The phone number will be operational this evening until 9 p.m., Central Time (CT); on Saturday from 9 a.m. to 6 p.m., CT; on Sunday from noon to 6 p.m., CT; on Monday from 8 a.m. to 8 p.m., CT; and thereafter from 9 a.m. to 5 p.m., CT. Interested parties also can visit the FDIC's website at https://www.fdic.gov/bank/individual/failed/guaranty.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $146.4 million. Compared to other alternatives, First-Citizen Bank & Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Guaranty Bank is the fifth FDIC-insured institution to fail in the nation this year, and the first in Wisconsin. The last FDIC-insured institution closed in the state was North Milwaukee State Bank, Milwaukee, on March 11, 2016.