Atlanta, Georgia - The Georgia Department of Banking and Finance (“Department”) took possession of Covenant Bank & Trust, Rock Spring, Georgia on March 23, 2012. The Superior Court of Walker County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of Covenant Bank & Trust.
The Department took possession of Covenant Bank & Trust pursuant to the Official Code of Georgia, Section 7-1-150(a) which authorizes the Department in its discretion to take possession of the business and property of any state chartered financial institution whenever such financial institution is either insolvent or operating in an unsafe or unsound condition to transact its business, is operating in violation of any court order, statute, rule or regulation, or requests the Department to take possession of its business and property.
Through an agreement with the FDIC, Covenant Bank & Trust will be acquired by Stearns Bank, N.A., St. Cloud, Minnesota.
All deposit accounts of Covenant Bank & Trust have been transferred to Stearns Bank, N.A. and will be available immediately. Depositors will be able to access their accounts at the former main office and branch location of Covenant Bank & Trust during regular business hours. Customers of both banks should continue to use their existing branches until Stearns Bank, N.A. can fully integrate the deposit records of Covenant Bank & Trust. Additionally, the former depositors of Covenant Bank & Trust can continue to access their accounts through automated teller machine transactions, checks and debit transactions.
All deposits will be transferred to Stearns Bank, N.A. and, therefore, it is not anticipated that there will be any loss exposure to former Covenant Bank & Trust depositors that have deposits exceeding the FDIC Deposit Insurance amounts.
The Department’s Commissioner, Robert M. Braswell, reminds depositors that deposits of all Georgia banks are insured by the FDIC up to $250,000. Special rules are in place for accounts held in trust status and joint accounts that may further expand deposit insurance coverage. Additional information on FDIC Deposit Insurance may be found at www.fdic.gov.
The FDIC has established a website and a toll-free phone number to answer questions from depositors, creditors and other interested parties regarding the receivership of Covenant Bank & Trust. Please refer to the FDIC’s website for further information regarding the details of the purchase and assumption transaction. The website is http://www.fdic.gov/bank/individual/failed/covenant.html and the toll-free phone number is 1-800-537-4048. The phone number is operational this evening until 9 p.m. Eastern Standard Time, on Saturday from 9 a.m. until 6 p.m., on Sunday from noon to 6 p.m., on Monday from 8 a.m. to 8 p.m.; and thereafter from 9:00 a.m. to 5:00 p.m.