Community & Southern Bank, Atlanta, Georgia, Assumes All of the Deposits of Georgia Trust Bank, Buford, Georgia
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FOR IMMEDIATE RELEASE July 20, 2012 |
Georgia Trust Bank, Buford, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, Atlanta, Georgia, to assume all of the deposits of Georgia Trust Bank.
The two branches of Georgia Trust Bank will reopen on Monday as branches of Community & Southern Bank. Depositors of Georgia Trust Bank will automatically become depositors of Community & Southern Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Georgia Trust Bank should continue to use their existing branch until they receive notice from Community & Southern Bank that it has completed systems changes to allow other Community & Southern Bank branches to process their accounts as well.
This evening and over the weekend, depositors of Georgia Trust Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of March 31, 2012, Georgia Trust Bank had approximately $119.8 million in total assets and $117.4 million in total deposits. Community & Southern Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of Georgia Trust Bank. In addition to assuming all of the deposits of the failed bank, Community & Southern Bank agreed to purchase approximately $111.5 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Community & Southern Bank entered into a loss-share transaction on $65.9 million of Georgia Trust Bank's assets. Community & Southern Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers with questions about today's transaction should call the FDIC toll-free at 1-800-822-0412. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/georgiatrust.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million. Compared to other alternatives, Community & Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. Georgia Trust Bank is the 35th FDIC-insured institution to fail in the nation this year, and the seventh in Georgia. The last FDIC-insured institution closed in the state was Montgomery Bank & Trust, Ailey, on July 6, 2012
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