SOURCE: BankSouth

February 07, 2011 12:13 ET

BankSouth Purchases Certain Assets and Assumes Deposits of North Georgia Bank

GREENSBORO, GA--(Marketwire - February 7, 2011) - BankSouth, a wholly owned subsidiary of BankSouth Holding Company, has entered into a Purchase and Assumption Agreement with the Federal Deposit Insurance Corporation ("FDIC") to purchase certain assets and to assume the certain deposits and other liabilities of North Georgia Bank, headquartered in Watkinsville, GA.

On Friday, February 4, 2011, North Georgia Bank was closed by the Georgia Department of Banking and Finance, and the FDIC was named as Receiver.

North Georgia Bank's Watkinsville branch office reopened as a branch of BankSouth with its normal Saturday banking hours on February 5, 2011. The Athens branch typically is closed on Saturdays, but BankSouth also opened that office on February 5 from 9 am to Noon to allow its new customers to come by for a visit, to meet BankSouth representatives, and to get answers to any questions they had.

Former North Georgia Bank depositors will be able to conduct banking business as usual. North Georgia Bank customers can continue to access their money by writing checks, using ATMs, debit cards, or the Internet. Checks drawn at North Georgia Bank will continue to be accepted. Loan customers should continue to make their payments as usual.

"The Watkinsville and Athens markets are natural extensions to our existing bank franchise. Several employees, including my family, have roots in the area, have attended or are attending area schools, or make their home here," said Harold Reynolds, BankSouth Chairman and CEO. "BankSouth is a well-capitalized institution with a consistent history of profitability, so this transaction will strengthen the banking experience for our new customers. We look forward to introducing our high-quality banking products and services."

North Georgia Bank deposit customers will receive a letter providing additional details concerning their accounts and are encouraged to visit www.banksouth.biz or call (866) 782-1897 for additional information.

Under the Purchase and Assumption Agreement, BankSouth purchased approximately $117 million in assets from the FDIC as Receiver of North Georgia Bank. Additionally, BankSouth will assume certain liabilities of North Georgia Bank, including approximately $79 million of deposits. Under the agreement, the FDIC will provide 80% loss-share coverage on covered loans and assets.

BankSouth did not pay a premium to the FDIC to assume the deposits of North Georgia Bank. No additional capital was required to fund the transaction and both BankSouth Holding Company and BankSouth will remain "well capitalized" after the transaction.

BankSouth was advised in the transaction by Banks Street Partners, LLC as financial advisor. Nelson Mullins Riley & Scarborough, LLP served as regulatory counsel.

ABOUT BANKSOUTH HOLDING COMPANY AND BANKSOUTH

BankSouth Holding Company is the parent company of BankSouth, an approximately $345 million-asset savings institution on a pro forma basis following the completion of the North Georgia Bank transaction. BankSouth provides a complete line of banking and financial services to individuals and businesses through its full-service banking offices in Georgia. BankSouth is insured by the FDIC.

Customers who have questions about the transaction can call the FDIC toll free at (866) 782-1897. The number is operational 8:00 am to 8:00 pm Monday through Friday, Saturday from 9:00 am to 6:00 pm, EST; and Sunday from Noon to 6:00 pm.

Contact Information

  • Contact:
    Harold Reynolds
    CEO-Chairman
    Phone Number: (706) 453-2943
    Email Contact