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06 May 2017

BestBank Fails, Forcing Feds to Close All 34 Georgia Locations

Late Friday evening, the Federal Deposit Insurance Corporation (FDIC) announced the closure of Guaranty Bank, Milwaukee, Wisconsin.

Guaranty Bank did business as BestBank in Georgia.

There were 34 BestBank locations operating across metro Atlanta, mostly in Kroger and Wal-Mart stores. Those branches will shut down and not re-open.

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. All depositors of Guaranty Bank, including BestBank customers, will automatically become depositors of First-Citizens Bank & Trust Company.

Customers of BestBank can continue to 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.

Customers with accounts at the 34 Georgia 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.

Guaranty Bank had approximately $1.0 billion in total assets and $1.0 billion in total deposits as of March 31, 2017. First-Citizens Bank & Trust Company agreed to purchase $892.6 million of the failed bank's assets and assume all the deposits of the failed bank. The FDIC will retain the remaining assets for later disposition.

Customers with questions about the BestBank failure should call the FDIC toll-free at (800) 930-6827 or visit www.fdic.gov/bank/individual/failed/guaranty.html.