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First Lowndes Bank shuts doors after 26 years
Baltimore News.Net
Friday 19th March, 2010
In 1984, a group of local investors realized the need for a locally owned community bank to serve the needs of Lowndes County, and the surrounding area, in Alabama.
After twenty six years of business the First Lowndes Bank, Fort Deposit, Alabama, was shut down on Friday by the Alabama Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank, Luverne, Alabama, to assume all of the deposits of First Lowndes Bank.
The four branches of First Lowndes Bank in Fort Deposit, Hayneville, Highland Home, and Greenville, will reopen under normal business hours beginning Saturday as branches of First Citizens Bank. Depositors of First Lowndes Bank will automatically become depositors of First Citizens Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their former First Lowndes Bank branch until they receive notice from First Citizens Bank that it has completed systems changes to allow other First Citizens Bank branches to process their accounts as well.
Over the weekend, depositors of First Lowndes Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of December 31, 2009, First Lowndes Bank had approximately $137.2 million in total assets and $131.1 million in total deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $38.3 million. First Citizens Bank was the first bank to fail this year in Alabama. The last FDIC-insured institution closed in the state was New South Federal Savings Bank, Irondale, on December 18, 2009.  Email this story to a friend
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