DEVELOPING STORY— State Banking Department takes over First Lowndes Bank

Published 5:22 pm Friday, March 19, 2010

MONTGOMERY — The Alabama State Banking Department has taken possession of First Lowndes Bank.

The takeover occurred at 5 p.m. Friday. The superintendent of Banks appointed the Federal Deposit Insurance Corporation as receiver the bank, effective immediately.

The superintendent of banks is allow by state law to take possession of a bank, if directed by the state Banking Board, in such cases where the bank’s capital is impaired or if any examination of the bank indicates the bank is operating in an unsafe or unsound condition or other applicable grounds for such action.

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First Citizens Bank with headquarters in Luverne will acquire First Lowndes Bank through an agreement with the FDIC.

Officials at the state Banking Department said First Citizens Bank has received all deposit accounts of First Lowndes Bank. Depositors may access their accounts at the former main office and branch locations of First Lowndes Bank.

Customers of the former First Lowndes Bank should continue to use their existing branches until First Citizens Bank can fully integrate the deposit records of First Lowndes Bank.

Former depositors of First Lowndes Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.

John D. Harrison, the Banking Department superintendent, said deposits of all Alabama banks are insured by the FDIC up to $250,000. Special rules are in place for accounts held in trust status and joint accounts and non-interest bearing transaction accounts that may further expand deposit insurance coverage.

Additional information on FDIC deposit insurance is available by clicking here

The FDIC has established a Web site and a toll-free number for questions from depositors, creditors and other interested parties about the receivership of First Lowndes Bank.

The toll-free number is 800-450-5417. The phone number is operational Friday until 9 p.m.; Saturday from 9 a.m. until 6 p.m.; Sunday from noon until 6 p.m. and thereafter, Monday through Friday from 8 a.m. until 8 p.m.

For further information about the details of the receivership, refer to the FDIC’s Web site here.