Find answers to questions such as: What makes an ERM program effective? How should it be implemented?
Tennessee: Clayton Bank and Trust Assumes Deposits of the Farmers Bank of Lynchburg
June 18 - The Farmers Bank of Lynchburg, Lynchburg, Tenn., has been closed by the Tennessee Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Clayton Bank and Trust, Knoxville, Tenn., to assume all of the deposits of The Farmers Bank of Lynchburg.
The four branches of The Farmers Bank of Lynchburg will reopen during their normal business hours beginning Saturday as branches of Clayton Bank and Trust, including the one branch that operates as First State Bank, Chapel Hill, Tennessee, and the two branches that operate as Oakland Deposit Bank, Oakland, Tenn.
As of March 31, 2012, The Farmers Bank of Lynchburg had approximately $163.9 million in total assets and $156.4 million in total deposits. Clayton Bank and Trust will pay the FDIC a premium of 0.10 percent to assume all of the deposits of The Farmers Bank of Lynchburg. In addition to assuming all of the deposits of the failed bank, Clayton Bank and Trust agreed to purchase essentially all of the assets.
Customers with questions about the transaction should call the FDIC toll-free at 800-774-8035. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/farmersbank.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $28.3 million. Compared to other alternatives, Clayton Bank and Trust's acquisition was the least costly resolution for the FDIC's DIF. The Farmers Bank of Lynchburg is the 31st FDIC-insured institution to fail in the nation this year, and the third in Tennessee. The last FDIC-insured institution closed in the state was Tennessee Commerce Bank, Franklin, on Jan. 27, 2012.