Georgia Department of Banking and Finance Takes Possession of Mountain Heritage Bank, Clayton, Georgia

June 24, 2011

Atlanta, Georgia - The Georgia Department of Banking and Finance (“Department”) took possession of Mountain Heritage Bank, Clayton, Georgia on June 24, 2011.  The Superior Court of Rabun County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of Mountain Heritage Bank.

The Department took possession of Mountain Heritage 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, Mountain Heritage Bank will be acquired by First American Bank and Trust Company, Athens, Georgia.

All deposit accounts of Mountain Heritage Bank have been transferred to First American Bank and Trust Company and will be available immediately. Depositors will be able to access their accounts at the former main office and branch locations of Mountain Heritage Bank during regular business hours.  Customers of both banks should continue to use their existing branches until First American Bank and Trust Company can fully integrate the deposit records of Mountain Heritage Bank.  Additionally, the former depositors of Mountain Heritage Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions. 

All deposits will be transferred to First American Bank and Trust Company and, therefore, it is not anticipated that there will be any loss exposure to former Mountain Heritage 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.  Additional information on FDIC Deposit Insurance may be found at

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 Mountain Heritage Bank. Please refer to the FDIC’s website for further information regarding the details of the purchase and assumption transaction. The website is and the toll-free phone number is 1-800-823-5346.  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.