NASHVILLE, Tenn. (AP) -- State regulators have taken possession of the Farmers Bank of Lynchburg, Tenn., and appointed the Federal Deposit Insurance Corp. as its receiver.
The Tennessee Department of Financial Institutions announced the action late Friday afternoon, citing the bank's "impaired capital, unsound condition and inability to continue normal operations."
Deposit accounts of the bank have been transferred to Clayton Bank and Trust of Knoxville and will be available immediately. Depositors will be able to access their accounts at the former main office and branch locations of the Lynchburg bank during regular business hours.
Regulators said ATMs can still be used, checks written and debit transactions made.
Lynchburg is home of the Jack Daniel distillery, the major employer in the city.
(Copyright 2012 by The Associated Press/CBS News. All Rights Reserved.)
