ATLANTA, July 18 -- The Georgia Department of Banking and Finance issued the following news release:
The Department of Banking and Finance ("Department") took possession of Eastside Commercial Bank, Conyers, Georgia on July 18, 2014. The Superior Court of Rockdale County issued an Order appointing the Federal Deposit Insurance Corporation ("FDIC") as Receiver of the Bank effective upon the Department taking possession of Eastside Commercial Bank.
The Department took possession of Eastside Commercial 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 either (1) is insolvent or operating in an unsafe or unsound condition to transact its business: (2) is operating in violation of any court order, statute, rule or regulation; or (3) requests the Department to take possession of its business and property.
Through an agreement with the FDIC, Eastside Commercial Bank will be acquired by Community & Southern Bank, Atlanta, Georgia.
All deposit accounts of Eastside Commercial Bank 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 Eastside Commercial Bank 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 Eastside Commercial Bank. Additionally, the former depositors of Eastside Commercial Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.
All deposits will be transferred to Community & Southern Bank and, therefore, it is not anticipated that there will be any loss exposure to former Eastside Commercial Bank depositors that have deposits exceeding the FDIC Deposit Insurance amounts.
The Department's Commissioner, Kevin B. Hagler, 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 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 Eastside Commercial Bank. Please refer to the FDIC's website for further information regarding the details of the transaction. The website is http://www.fdic.gov/bank/individual/failed/eastside.html and the toll-free phone number is 1-800-894-5183. 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., on Monday from 8 a.m. to 8 p.m.; and thereafter from 9:00 a.m. to 5:00 p.m.
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