KnoxNews says Clayton Bank and Trust of Knoxville, Tennessee will take over the assets and operations of all four branches of Farmers Bank of Lynchburg, TN that were shut down by regulators on Friday, June 15. According to the Federal Deposit Insurance Corporation (FDIC), Farmers had $156.4 million in deposits as of March 31, 2012, and those deposits will automatically become part of Clayton Bank, and will continue to be insured by the FDIC. On Saturday, Farmers four banks opened as branches of Clayton Bank and Trust, which will pay the FDIC a premium of 0.1 percent to assume the deposits of Farmers. Jim Clayton, who founded Clayton Homes in 1966 and built it into the largest producer of manufactured housing in the U.S., entered the banking business in 1993, and is now CEO of Clayton BankCorp, parent of Clayton B&T. Clayton Homes was sold to Warren Buffett’s Berkshire Hathaway in 2003 for $1.7 billion. MHProNews has learned Clayton BankCorp is a $706 million multi-bank holding company based in Knoxville.
