#10

Hamilton State Bank, Hoschton, Georgia, Assumes All of the Deposits of Douglas County Bank, Douglasville, Georgia

FOR IMMEDIATE RELEASE April 26, 2013

Media Contact: LaJuan Williams-Young Office: 202-898-3876 Email: lwilliams-young@fdic.gov

Douglas County Bank, Douglasville, Georgia, was closed today by the Georgia Department of Banking & 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 Hamilton State Bank, Hoschton, Georgia, to assume all of the deposits of Douglas County Bank.
The four former branches of Douglas County Bank will reopen as branches of Hamilton State Bank during their normal business hours. Depositors of Douglas County Bank will automatically become depositors of Hamilton State 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 Douglas County Bank should continue to use their current branch until they receive notice from Hamilton State Bank that systems conversions have been completed to allow full-service banking at all branches of Hamilton State Bank.
This evening and over the weekend, depositors of Douglas County 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 December 31, 2012, Douglas County Bank had approximately $316.5 million in total assets and $314.3 million in total deposits. Hamilton State Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of Douglas County Bank. In addition to assuming all of the deposits of the failed bank, Hamilton State Bank agreed to purchase approximately $260.9 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Hamilton State Bank entered into a loss-share transaction on $159.2 million of Douglas County Bank's assets. Hamilton State 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 1-800-405-1498. 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 8:00 a.m. to 8:00 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/douglascb.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $86.4 million. Compared to other alternatives, Hamilton State Bank's acquisition was the least costly resolution for the FDIC's DIF. Douglas County Bank is the 10th FDIC-insured institution to fail in the nation this year, and the second in Georgia. The last FDIC-insured institution closed in the state was Frontier Bank, LaGrange, on March 8, 2013.