Georgia Department of Banking and Finance Takes Possession of United Security Bank, Sparta, Georgia

November 6, 2009


Atlanta, Georgia ~ The Georgia Department of Banking and Finance (“Department”) took possession of United Security Bank, Sparta, Georgia on November 6, 2009.  The Superior Court of Hancock County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of United Security Bank.

The Department took possession of United Security 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. 

Through an agreement with the FDIC, United Security Bank will be acquired by Ameris Bank, Moultrie, Georgia.

All deposit accounts of United Security Bank have been transferred to Ameris Bank and will be available immediately.  On Saturday, November 7, 2009, depositors will be able to access their accounts at the former main office of United Security Bank. The Woodstock branch location will resume normal business hours on Monday.  Customers of both banks should continue to use their existing branches until Ameris Bank can fully integrate the deposit records of United Security Bank.   Additionally, the former depositors of United Security Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.  It should be noted that United Security Bank utilized the trade name Bank of Woodstock at its Woodstock branch location.

All deposits will be transferred to Ameris Bank and, therefore, it is not anticipated that there will be any loss exposure to former United Security 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 United Security Bank. 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 1-866-782-1897.  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.

 

The Department has regulatory and/or licensing authority over state-chartered banks, credit unions, trust companies, mortgage brokers, mortgage lenders, mortgage processors, mortgage loan originators, check cashers, sale of check companies, money transmitters, international banking organizations, and bank holding companies conducting business in Georgia.  Visit us on the Web at: http://dbf.georgia.gov/

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