Georgia Department of Banking and Finance Takes Possession of Bank of Ellijay, Ellijay, Georgia

September 17, 2010


Atlanta, Georgia
 - The Georgia Department of Banking and Finance (“Department”) took possession of Bank of Ellijay, Ellijay, Georgia on September 17, 2010.  The Superior Court of Gilmer County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of Bank of Ellijay.

The Department took possession of Bank of Ellijay 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, Bank of Ellijay will be acquired by Community & Southern Bank, Carrollton, Georgia.

All deposit accounts of Bank of Ellijay have been transferred to Community & Southern Bank and will be available immediately. Depositors will be able to access their accounts at the former main office and branch location of Bank of Ellijay during regular business hours. Customers of both banks should continue to use their existing branches until Community & Southern Bank can fully integrate the deposit records of Bank of Ellijay.  Additionally, the former depositors of Bank of Ellijay can continue to access their accounts through automated teller machine transactions, checks and debit transactions.  It should be noted that Bank of Ellijay utilized the trade name Bank of Canton at the branch office in Canton, Georgia.

All deposits will be transferred to Community & Southern Bank and, therefore, it is not anticipated that there will be any loss exposure to former Bank of Ellijay 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 Bank of Ellijay. 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 1-800-930-1849.  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.