Tuesday, December 15, 2009

Tattnal Bank of Reidsville is the 24th Bank Failure in Georgia

The Tattnall Bank, Reidsville, Georgia, was closed Friday, December 4, 2009, by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with HeritageBank of the South, Albany, Georgia, to assume all the deposits of The Tattnall Bank.
The Tattnall Bank is the 127th FDIC-insured institution to fail in the nation this year, and the 24th in Georgia. The last FDIC-insured institution closed in the state was First Security National Bank in Norcross on December 4, also.
The two branches of The Tattnall Bank re-opened Saturday as branches of HeritageBank of the South. Depositors of The Tattnall Bank have automatically become depositors of HeritageBank of the South. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until HeritageBank of the South can fully integrate the deposit records of The Tattnall Bank.
As of Friday evening, December 4, and over the past weekend, depositors of The Tattnall Bank were able to access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of September 30, 2009, The Tattnall Bank had total assets of $49.6 million and total deposits of approximately $47.3 million. HeritageBank of the South did not pay the FDIC a premium for the deposits of The Tattnall Bank. In addition to assuming all the deposits of the failed bank, HeritageBank of the South agreed to purchase the $48.5 million of the failed bank's assets. The FDIC retained the remaining assets for later disposition.
Customers who have questions about the transaction can call the FDIC toll free at 1-800-405-8251. The phone number is operational from 8 a.m. to 8 p.m. Eastern Standard Time (EST). Interested parties can also visit the FDIC's website at
http://www.fdic.gov/bank/individual/failed/tattnall.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $13.9 million. HeritageBank of the South's acquisition of all the deposits was the "least costly" resolution for the DIF compared to alternatives.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,099 banks and savings associations, and it promotes the safety and soundness of these institutions by identifying, monitoring, and addressing risks to which they are exposed. The FDIC receives no federal tax dollars; insured financial institutions fund its operations.

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