Georgia Department of Banking and Finance Takes Possession of Banking Subsidiaries of Security Bank Corporation, Macon, Georgia

July 24, 2009


Atlanta, Georgia ~ On July 24, 2009, the Georgia Department of Banking and Finance (“Department”) took possession of the banking subsidiaries of Security Bank Corporation, Macon, Georgia, a Georgia bank holding company.  The six banking subsidiaries (“the Banks”) are: Security Bank of Bibb County, Macon, GA, Security Bank of Jones County, Gray, GA, Security Bank of Houston County, Perry, GA, Security Bank of Gwinnett County, Suwanee, GA, Security Bank of North Metro, Woodstock, GA, and Security Bank of North Fulton, Alpharetta, GA. 

The Superior Courts of Bibb, Jones, Houston, Gwinnett, Cherokee and Fulton Counties issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Banks effective upon the Department taking possession of the Banks.

The Department took possession of the Banks 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, the Banks will be acquired by State Bank and Trust Company, Pinehurst, Dooly County, Georgia.

All deposit accounts of the Banks have been transferred to State Bank and Trust Company and will be available immediately.  Normal banking hours will be observed for the former main office and branch locations of the Banks.   Customers of these banks should continue to use their existing branches until State Bank and Trust Company can fully integrate the deposit records of the Banks.   Additionally, the former depositors of the Banks can continue to access their accounts through automated teller machine transactions, checks and debit transactions.

All deposits will be transferred to State Bank and Trust Company and, therefore, it is not anticipated that there will be any loss exposure to former the Banks 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 the Banks. Please refer to the FDIC’s website for further information regarding the details of the purchase and assumption transaction. The website is www.fdic.gov and the toll-free phone number is 1-800-822-0412. 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. and thereafter from 8 a.m. to 8 p.m.