The Georgia Department of Banking and Finance (“Department”) took possession of FirstCity Bank, Stockbridge, Georgia on March 20, 2009. The Superior Court of Henry County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of FirstCity Bank effective upon the Department taking possession of FirstCity Bank.
The Department took possession of FirstCity Bank pursuant to the Official Code of Georgia, Section 7-1-150(a) which authorizes the Department in its discretion to take possession of the business and property of any state chartered financial institution whenever such financial institution is either insolvent or operating in an unsafe or unsound condition to transact its business, is operating in violation of any court order, statute, rule or regulation, or requests the Department to take possession of its business and property.
After an extensive marketing process, the FDIC was unable to find another financial institution to take over the banking operations of FirstCity Bank. Therefore, the FDIC will mail checks to retail depositors for their insured funds on Monday, March 23, 2009. Insured depositors should receive this check within one week of the bank’s closing. If the balance in an interest bearing account(s) (this includes any accounts in which a depositor has an ownership interest) is less than $250,000, or if the deposit is in a non-interest bearing transaction account(s), no action is required by the customer at this time.
As of the time of FirstCity Bank’s closing, customers will no longer have access to the bank’s website and online services. Additionally, customer transactions that occur after the date of receivership will not be valid, including debit transactions, ATM transactions and checks written against bank funds. It is therefore important that customers avoid such transactions while awaiting the receipt of their insured deposit funds from the FDIC.
Principal and interest on insured accounts are fully insured by the FDIC, up to the insurance limit of $250,000. Special rules are in place for accounts held in trust status and joint accounts that may further expand deposit insurance coverage. You can find additional information on FDIC Deposit Insurance at www.fdic.gov.
Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-877-367-2719 to set up an appointment to discuss their deposits with an FDIC claims agent. Beginning Monday, depositors of FirstCity Bank with accounts in excess of $250,000 may visit the FDIC’s webpage “Is My Account Fully Insured?” at http://www2.fdic.gov/dip/Index.asp.
The FDIC has established a website at http://www.fdic.gov/ and a toll-free phone number to answer questions from depositors, creditors and other interested parties regarding the receivership of FirstCity Bank. As noted above, the toll-free phone number is 1-877-367-2719. The phone number is operational this evening from 6 p.m. until 9 p.m. Eastern Standard Time, on Saturday from 9 a.m. until 6 p.m. on Sunday from noon to 6 p.m. and thereafter from 8 a.m. to 8 p.m.