Guaranty Bank Of Milwaukee Fails
This evening Guaranty Bank of Milwaukee (d/b/a BestBank in Georgia & Michigan) was closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. Guaranty Bank had 119 branches in 5 states. The 12 brick-and-mortar locations in Illinois, Minnesota, and Wisconsin will reopen as branches of First-Citizens Bank & Trust Company during their normal business hours. The 107 branches in retail outlets, such as grocery and general merchandise stores, will not be reopening.
Guaranty Bank is the second large (One billion plus in deposits and assets) bank failure in a week with New Orleans-based First NBC Bank having failed on April 28th. Guaranty Bank is expected to cost the FDIC about $150 million in clean up cost.
Two data points do not make a trend, but it had been two years since a bank the size of either one of these two banks had failed in the United States and now two banks have failed on consecutive Fridays. Five banks have failed this year. Puerto Rico moved to bankruptcy just this week as well.