DETROIT – Guaranty Bank, also known in Michigan and Georgia as BestBank, has been shut down by federal regulators, officials said Friday.
First-Citizens Bank & Trust Company, of Raleigh, North Carolina, assumed all the deposits of Guaranty Bank, which is headquartered in Wisconsin.
Guaranty Bank was closed by the Office of the Comptroller of the Currency. It also had branches in Illinois, Minnesota and Wisconsin. The branches in retail outlets will not reopen.
Guaranty Bank failed after it was unable to recover from major loan losses stemming from the housing and foreclosure crisis, according to published reports.
The 12 physical locations locations in Illinois, Minnesota and Wisconsin will reopen as branches of First-Citizens Bank & Trust Company. It’s not clear what will happen in Michigan.
Federal regulators said anyone who used Guaranty Bank will automatically become a depositor at First-Citizens Bank & Trust Company.
Deposits will continue to be insured by the Federal Deposit Insurance Corp. Over the weekend, Guaranty Bank customers can still access their money. People can continue writing checks and using their ATM or debit cards. Loan customers are advised to continue making normal payments.
Even people whose branch is closing can conduct online and mobile banking.
Customers with questions should call the FDIC toll-free at 800-930-6827 or visit this website.
Guaranty Bank is the fifth FDIC-insured institution to fail in the U.S. this year, according to a news release from the FDIC.