BankEast was closed Friday by the Tennessee Department of Financial Institutions.
The ten BankEast branches will reopen Monday as branches of the Cincinnatti-based US Bank National Association. More information about the transfer can be found on US Bank's website.
BankEast account holders can continue to write checks, use ATMs and use debit cards as usual.
The Federal Deposit Insurance Corporation (FDIC) coordinated the transaction.
In December of 2010, BankEast received a warning to earn more money in the next 90 days or make itself available for merger.
Norma Tomlinson with the FDIC helped take inventory for the new owners Friday night.
She indicted the bank may have gotten into trouble by putting "all their eggs in one basket."
She said the bank invested heavily in commercial real estate.
"The volume of commercial real estate loans that were held was quite sizable, and we all know what happened there," said Tomlinson.
According to the FDIC they sold the bank for about $200 million. The banks assets were worth about $270 million.
They estimate it will cost the their insurance fund about $70 million to handle the bank's closure.
BankEast Customer Matt Fabian visited the ATM on Market Street Friday evening after hearing about the trouble.
"It's good the money still comes out of the machine," said Fabian.
He says he's not too concerned about his finances since the bank is FDIC insured. However, he said he will miss banking with a local institution.
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