The Tennessee Department of Financial Institutions closed Memphis,Tenn.-based Trust Co. Bank,according to an April 29 news release from the FDIC.
The FDIC, which was appointed as receiver for the failed institution,has entered into a purchase and assumption agreement with Piperton, Tenn.-basedBank of Fayette County($394.6 million) to assume all the deposits of Trust Co. Bank. Bank of Fayette Countyalso agreed to purchase approximately $3.9 million of the failed bank's assets.The FDIC will retain the remaining assets for later disposition.
All of Trust Co. Bank's branches will reopen as Bank of FayetteCounty branches during normal business hours, with depositors of the failed institutionalso becoming Bank of Fayette County depositors. All their deposits will still beinsured by the FDIC.
As of Dec. 31, 2015, Trust Co. Bank, a unit of had approximately$20.7 million in total assets and $20.3 million in total deposits.
The failure, the second FDIC-insured institution to fail nationwidein 2016 and the first in Tennessee, will cost the FDIC's Deposit Insurance Fund$7.2 million.
Bank of Fayette County is a unit of Moscow Bancshares Inc.