It’s been a long while since we’ve had a Bank Failure Friday. Seems like during 2009 through 2011, it was happening every third or fourth week. Fortunately, the flood of failures stopped in 2013. But, if you were betting on the failure of Atlanta’s Capitol City Bank and Trust, your ship finally came in today. And on Friday the 13th to boot.
Capitol City Bank & Trust Company, Atlanta, Georgia, was closed today by the Georgia Department of Banking & Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. 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 Capitol City Bank & Trust Company.
The eight former branches of Capitol City Bank & Trust Company will reopen during normal business hours. The failed bank will operate as Capitol City Bank & Trust, a division of First-Citizens Bank & Trust Company. Depositors of Capitol City Bank & Trust Company will automatically become depositors of First-Citizens Bank & Trust Company. 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 of Capitol City Bank & Trust Company should continue to use their current branch until they receive notice from First-Citizens Bank & Trust Company that systems conversions have been completed to allow full-service banking at all branches of First-Citizens Bank & Trust Company.
I guess we should be glad that the economy has improved enough that the rate of Georgia bank failures has slowed down to the point where it’s a rare occurrence. And if you happened to be a depositor at Capitol City, you can find out more details here.