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Georgia: Fidelity Bank Assumes Deposits of Security Exchange Bank
June 18 - Security Exchange Bank, Marietta, Ga., has been closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Fidelity Bank, Atlanta, to assume all of the deposits of Security Exchange Bank.
As of March 31, 2012, Security Exchange Bank had approximately $151 million in total assets and $147.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, Fidelity Bank agreed to purchase essentially all of the assets.
The FDIC and Fidelity Bank entered into a loss-share transaction on $102.8 million of Security Exchange Bank's assets. Fidelity 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: www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers with questions about the transaction should call the FDIC toll-free at 800-760-3641. 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 website at www.fdic.gov/bank/individual/failed/securityexchange.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $34.3 million. Compared to other alternatives, Fidelity Bank's acquisition was the least costly resolution for the FDIC's DIF. Security Exchange Bank is the 30th FDIC-insured institution to fail in the nation this year, and the fifth in Georgia. The last FDIC-insured institution closed in the state was Covenant Bank & Trust, Rock Spring, on March 23, 2012.