MILWAUKEE — Several local grocery store bank branches have been shut down as a result of federal officials closing Milwaukee-based Guaranty Bank on Friday.
The Office of the Comptroller of the Currency appointed the Federal Deposit Insurance Corp. (FDIC) as receiver for the bank, which had 119 branches in five states, 107 of which were in retail outlets, such as grocery and general merchandise stores. The branches in those retail outlets will not be reopening, the FDIC said in a release issued Friday.
Among those locations are the following in Racine County:
At the Burlington Walmart, 1901 S. Milwaukee Ave.
At the Caledonia Pick ‘n Save, 5111 Douglas Ave.
At the Mount Pleasant Walmart, 3049 S. Oakes Road.
Other nearby retail branches that have permanently closed include those located at: Piggly Wiggly, 2201 E. Rawson Ave., Oak Creek; Pick ‘n Save, 1901 63rd St., Kenosha; Walmart 201 S. Edwards Blvd., Lake Geneva; and Piggly Wiggly, W189 S7847 Racine Ave., Muskego.
To protect depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Co. in Raleigh, North Carolina, to assume all of the deposits of Guaranty Bank. Guaranty Bank did business as BestBank in Georgia and Michigan.
The 12 brick-and-mortar Guaranty locations in Illinois, Minnesota and Wisconsin will reopen as branches of First-Citizens Bank & Trust Co. during their normal business hours. Among those is the former Guaranty branch located at 6031 Regency West Drive, Mount Pleasant.
All depositors of Guaranty Bank, regardless of where they conducted business, will automatically become depositors of First-Citizens Bank & Trust Co., the FDIC said.
The FDIC said deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage up to applicable limits. Customers in the branches being assumed by First-Citizens Bank & Trust Co. should continue to use their existing branch until they receive notice that systems changes have been completed to allow First-Citizens Bank & Trust Co. branches to process their accounts. For a complete list of branches, visit www.fdic.gov/guaranty-best-branches.
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.
As of March 31, Guaranty Bank had approximately $1 billion in total assets and $1 billion in total deposits. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Co. agreed to purchase $892.6 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
Customers with questions about the change can call the FDIC toll-free at 800-930-6827. The phone number was to be operational from 9 a.m. to 6 p.m. Saturday; from noon to 6 p.m. Sunday; from 8 a.m. to 8 p.m. Monday; and from 9 a.m. to 5 p.m. weekdays thereafter. Information is also available at 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 will be $146.4 million. Compared to other alternatives, First-Citizen Bank & Trust Co.’s acquisition was the least costly resolution for the FDIC’s.
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 on March 11, 2016.
Congress created the FDIC in 1933 to restore public confidence in the nation’s banking system after numerous bank failures during the Great Depression.