Tenn. sees first two bank failures in a decade

FRANKLIN, Tenn. (AP) -- Regulators have closed Tennessee Commerce Bank in Franklin and BankEast in Knoxville, the state's first bank closures in a decade.

Both were purchased immediately on Friday.

Republic Bancorp Inc. of Louisville, Ky., will buy all of Tennessee Commerce Bank's deposits and some of its loans.

The Tennessean reports deposits are protected up to legal limits by the Federal Deposit Insurance Corp., but stockholders shouldn't expect to be made whole financially.

In Knoxville, U.S. Bank National Association will take over BankEast, according to the Knoxville News Sentinel.

In a statement, the FDIC said all BankEast deposits, regardless of the amount, were transferred to U.S. Bank and that ATM and debit cards will work as usual over the weekend.

Both banks are expected to be open for business on Monday.

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