NASHVILLE, Tenn. (WSMV/AP) - State regulators have taken possession of the Farmers Bank of Lynchburg 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."
To protect depositors, Lynchburg accounts have been transferred to Clayton Bank and Trust of Knoxville. Accounts will be available immediately.
Depositors will be able to access their accounts at the former main office and branch locations of the Lynchburg bank during regular business hours.
Meanwhile, the four branches of the Farmers Bank of Lynchburg will re-open Saturday, including the branch that operates as First State Bank, Chapel Hill, Tennessee, and the two branches operate as Oakland Deposit Bank in Oakland, according to the FDIC.
Regulators said ATMs can still be used, checks written and debit transactions made.
Lynchburg is home of the Jack Daniel distillery, the major employer in the city.
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