MILWAUKEE -- A federal agency has shut down every single Guaranty Bank including all 48 in Wisconsin. Ten brick and mortar banks will reopen during business hours on Saturday, May 6th as a First-Citizens Bank.
The Federal Deposit Insurance Corporation (FDIC) says First-Citizens Bank will take over the Guaranty Banks, and all Guaranty customers' accounts will automatically move over.
Despite this abrupt closure, customers of Guaranty Bank should be able to use their existing checks, ATM and/or debit cards.
According to Office of the Comptroller of the Currency (OCC), Guaranty Bank had branch offices in Wisconsin, Minnesota, Illinois, Michigan and Georgia. As of December 31st, 2016, the institution had approximately $1 billion in total assets. The OCC stated in a news release that after finding Guaranty Bank had experienced substantial dissipation of assets or earnings due to unsafe or unsound practices. The OCC also found that the bank was "significantly undercapitalized and failed to submit a capital restoration plan acceptable to the OCC."
A spokesperson with the FDIC tells FOX6 News they informed employees at every bank location to let them know about the closure. The spokesperson says First-Citizens Bank will be determining employee job status.
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 that will and will not reopen, CLICK HERE.
Starting Friday evening, the news release states 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's on-site at the branches in retail outlets will not be operational.
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.