Omni National Bank of Atlanta, Ga., failed on Friday, and SunTrust Bank (STI) of Atlanta agreed to act as paying agent for Omni’s insured deposits.
SunTrust will operate the six former Omni branches until April 27, at which time all of those branches will be closed. The six branches are in Atlanta; Dalton, Ga.; Tampa, Fla.; Chicago; Dallas; and Houston.
Former Omni customers will be able to perform banking activities, such as check-writing, during the transition period.
Omni customers in Georgia or Florida can choose either to open a SunTrust account, or close their accounts and receive checks.
Omni customers in Illinois and Texas who do not close their accounts by April 27 will be mailed checks by SunTrust to the address of record.
The Federal Deposit Insurance Corp. entered into the agreement with SunTrust “to avoid the inconvenience and disruption of customers receiving checks for their insured deposits,” the FDIC said in a press release, adding that the arrangement allows time for customers to change their direct-deposit arrangements.
As of March 9, Omni had $956 million in assets and deposits of $796.8 million. The FDIC said that at the time of closing, it estimated that there was $2 million in uninsured deposits that exceeded the insurance limit.
Brokered deposits were not part of the transaction, the FDIC said. The FDIC intends to pay the $320.1 million in brokered deposits to the brokers for the amount of their insured funds.
Customers with accounts in excess of $250,000 should contact the FDIC at 800-830-3250 to set up an appointment to discuss their deposits, the FDIC said. Customers can also visit a Web site the FDIC has created with information on the failure of Omni National Bank.
The FDIC estimates the cost to its deposit-insurance fund will be $290 million. Omni is the 21st bank to fail this year in the U.S.
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