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Inquiries Concerning NetBank, Alpharetta, GA

On October 1, 2007, the Office of Thrift Supervision (OTS) closed NetBank in Alpharetta, Ga., and FDIC subsequently approved the assumption of the insured deposits of NetBank by ING Bank, FSB in Wilmington, Delaware.  Depositors of NetBank will automatically become depositors of ING Bank.

Please note that the Georgia Department of Banking and Finance has no regulatory or supervisory authority over NetBank since it was a federally chartered thrift institution, regulated by the OTS.

NetBank had $2.5 billion in total assets and $2.3 billion in total deposits as of June 30. OTS said NetBank sustained significant losses in 2006 primarily due to early payment defaults on loans sold, weak underwriting, poor documentation, a lack of proper controls and failed business strategies. The failed institution was an Internet bank and did not have any physical branches. ING Bank agreed to assume $1.5 billion of the failed bank's insured non-brokered deposits for a 1 percent premium and will purchase $724 million of its assets.

Read the FDIC’s press release at: http://www.fdic.gov/news/news/press/2007/pr07081.html