First NBC Bank, New Orleans has been closed by the Louisiana Office of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Whitney Bank and no depositor is losing money as a result of this transaction.
At the time of closing, the receiver immediately transferred all transactional deposit accounts—checking, savings, NOW, and money market—of First NBC Bank to Whitney Bank. Whitney Bank also assumed certificates of deposit (CDs) securing loans. The FDIC will mail checks for time deposit accounts, including all other CDs, individual retirement accounts (IRAs), and brokered deposits, directly to account holders on Monday, May 1. Checks will reflect accrued interest.
Whitney Bank will reopen all 29 branches of First NBC Bank for normal business hours as Whitney Bank in Louisiana (24 branches) and as Hancock Bank In Florida (five branches). Depositors with transactional accounts of First NBC Bank will automatically become depositors of Whitney Bank.
Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage up to applicable limits.
Customers of First NBC Bank should continue to use their existing branch until they receive notice from Whitney Bank that it has completed systems changes to allow other Whitney Bank branches to process their accounts as well.