CertusBank Assumes Deposits and Purchases Assets of Two Georgia Banks
Press release from the issuing company
Wednesday, May 25th, 2011
Blue Ridge Holdings, Inc., announced today that its wholly owned subsidiary, CertusBank, N.A., a nationally chartered bank, has assumed all of the deposits and substantially all of the assets of the First Georgia Banking Company, located in Franklin, GA, and Atlantic Southern Bank, located in Macon, GA, in separate Purchase and Assumption Agreements with loss share arrangements with the Federal Deposit Insurance Corporation (FDIC). The loss share transactions are projected to maximize returns on the assets covered by keeping them in the private sector and to minimize disruptions for loan customers.
At the close of business on Friday, May 20, 2011, both First Georgia Banking Company and Atlantic Southern Bank were closed by the Georgia Department of Banking and Finance, and the FDIC was appointed Receiver. Simultaneously CertusBankassumed all of the deposits and purchased substantially all of the assets of both banks.
To protect depositors, deposit customers of both institutions will automatically become depositors of CertusBank. All locations and all related operations of both First Georgia Banking Company and Atlantic Southern Bank will be open normal business hours, and customers will have full access to their deposits. All customer deposits continue to be insured up to at least $250,000 by the FDIC. In addition, all deposits in non-interest earning transaction accounts are insured in full by the FDIC through December 31, 2012. This is in addition to, and separate from, the $250,000 coverage available under the FDIC’s general deposit insurance rules.
K. Angela Webb, Senior Executive Vice President and Chief Administrative Officer commented “We are pleased to welcome the customers of First Georgia Banking Company and Atlantic Southern Bank to CertusBankSM, and we want to assure customers that their deposits are safe and accessible. It is also our intention to hire 98% of all employees, so customers will be greeted by the same familiar faces. Existing checks, debit cards, ATM cards and online banking and bill pay services will continue to work, allowing customers to access their money without interruption. Checks drawn on the bank will continue to be processed and loan customers should continue to make their payments as usual.”
As a result of these transactions, CertusBankexpands its existing footprint outside of South Carolina, adding 25 locations in Georgia and one in Florida. Its assets now comprise $1.8 billion.
First Georgia Banking Company was based in Franklin, Georgia and operated 10 branches and two operations centers across the State of Georgia. The bank had over $700 million in assets at the time of its closure by the FDIC.
Atlantic Southern Bank was based in Macon, Georgia and operated 16 branches and one operations center in Georgia and northern Florida. The bank had $741 million in assets at the time of its closure by the FDIC.
In January 2011, CertusBankacquired the assets of CommunitySouth Bank & Trust of Easley, SC through a similar transaction with the FDIC. Today CertusBankcontinues to operate all six former CommunitySouth branches under the CertusBankname in the Upstate of South Carolina.
“We’re truly excited for CertusBankto extend its presence into Georgia and northeast Florida,” said CertusBankChairman, CEO and President Milton H. Jones, Jr., whose 30-plus-year banking career includes serving as Georgia market president for Bank of America. “The State of Georgia is strategic to our growth. Our footprint covers some of the most economically diverse and promising cities in the country, and we look forward to being an integral part of the communities we serve.”