One of the nation’s largest Black-owned banks has failed. Capitol City Bank & Trust was taken over by the Georgia Department of Banking and Finance on Friday evening and appointed the Federal Deposit Insurance Corp. as receiver. All depositors are now being handled by a White-owned bank located in Raleigh, North Carolina.
Founded in 1994, the bank made a point of servicing the inner-city Black community. The bank was headquartered in Atlanta and with branches in Augusta and Savannah; this is the third bank to fail in Georgia. In 2011, it was named the ninth largest Black-owned bank in the country.
According to the to Georgia Department of Banking and Finance, “All deposits will be transferred to First Citizens Bank & Trust Company and, therefore, it is not anticipated that there will be any loss exposure to former Capitol City Bank & Trust Company depositors that have deposits exceeding the ($250,000) FDIC Deposit Insurance amounts.”
On Saturday, Feb. 14, 2015, Capitol City Bank & Trust Company branches will begin operating as Capitol City Bank & Trust, a division of First-Citizens Bank & Trust Company. Depositors will not sustain any losses.
Capitol City Bank & Trust had assets of $272 million and $263 million in total deposits making it the 49th largest in the state of Georgia. Depositors will now be serviced by First Citizens Bank & Trust Company with 566 branches in 18 states and over $30 billion in assets.
“Our company’s stability, strength and solid capital levels have allowed us to make these types of transactions. We assure customers of Capitol City Bank & Trust that their deposits are safe, sound and readily accessible, and we are dedicated to being a valued partner,” stated Frank B. Holding Jr., chairman and CEO of First Citizens Bank.
It’s a sad ending for a prominent fixture in Atlanta’s Black community.