Georgia Department of Banking and Finance Takes Possession of American Southern Bank, Kennesaw, Georgia

April 24, 2009


The Georgia Department of Banking and Finance (“Department”) took possession of American Southern Bank, Kennesaw, Georgia on April 24, 2009.   The Superior Court of Cobb County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of American Southern Bank.

The Department took possession of American Southern Bank 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. 

All deposit accounts of American Southern Bank have been transferred to Bank of North Georgia, Alpharetta, Georgia, and will be available immediately. On Saturday, April 25, 2009, depositors will be able to access their accounts at the former main office of American Southern Bank. For the time being, former customers of American Southern Bank should use the former office of American Southern Bank until Bank of North Georgia can fully integrate the deposit records of American Southern Bank.  Additionally, the former depositors of American Southern Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.

All deposits will be transferred to Bank of North Georgia and, therefore, it is not anticipated that there will be any loss exposure to former American Southern Bank 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.  You can find additional information on FDIC Deposit Insurance 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 American Southern Bank.  The website is www.fdic.gov and the toll-free phone number is 1-800-323-6111.  The phone number is operational on Friday from 4 p.m. until 9 p.m. Eastern Standard Time, on Saturday from 9 a.m. until 6 p.m. on Sunday from noon to 5 p.m. and thereafter from 8 a.m. to 8 p.m.