State Takes Over Farmers Bank of Lynchburg

Farmers Bank of Lynchburg

State regulators have taken possession of the Farmers Bank of Lynchburg, Tenn., and appointed the Federal Deposit Insurance Corp. as its receiver.
The Tennessee Department of Financial Institutions announced the action late Friday afternoon, citing the bank’s “impaired capital, unsound condition and inability to continue normal operations.”
Deposit accounts of the bank have been transferred to Clayton Bank and Trust of Knoxville and will be available immediately. Clayton Bank and Trust is the owner of American City Bank, with branches in Tullahoma and Manchester.
Depositors will be able to access their accounts at the former main office and branch locations of the Lynchburg bank during regular business hours.
Regulators said ATMs can still be used, checks written and debit transactions made.
The FDIC has established a toll-free phone number to answer questions from depositors, creditors and other interested parties regarding the receivership of The Farmers Bank of Lynchburg.
An important thing to remember is that customers of Farmers Bank are now subject to the guidelines of the new bank, including interest rates on loans and deposits.
The toll-free number is 1-800-774-8035.