Bank of the Ozarks takes over operations
At right,The former Chestatee location in Marble Hill with its new Bank of the Ozarks sign.
Chestatee State Bank, a Dawsonville based bank with a branch in Marble Hill, was closed Friday by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Chestatee State Bank.
The four branches of Chestatee State Bank re-opened during normal business hours beginning Saturday as new branches of Bank of the Ozarks. Depositors of Chestatee State Bank will automatically become depositors of Bank of the Ozarks. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.
Customers of Chestatee State Bank should continue to use their existing branch until they receive notice from Bank of the Ozarks that it has completed systems changes to allow other Bank of the Ozarks branches to process their accounts as well.
Depositors of Chestatee State Bank can 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, 2010, Chestatee State Bank had approximately $244.4 million in total assets and $240.5 million in total deposits. Bank of the Ozarks did not pay the FDIC a premium for the deposits of Chestatee State Bank. In addition to assuming all of the deposits of the failed bank, Bank of the Ozarks agreed to purchase essentially all of the assets.
The FDIC and Bank of the Ozarks entered into a loss-share transaction on $195.3 million of Chestatee State Bank's assets. Bank of the Ozarks will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about this bank transition can call the FDIC toll-free at 1-800-238-8209. That phone number is operational week days from 8 a.m. to 8 p.m., EST. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/chestatee.html.
The FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $75.3 million. Compared to other alternatives, Bank of the Ozarks's acquisition was the least costly resolution for the FDIC's DIF. Chestatee State Bank is the 153rd FDIC-insured institution to fail in the nation this year and the 19th in Georgia. The last FDIC-insured institution closed in the state was Darby Bank & Trust, Vidalia, on November 12, 2010.
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 7,760 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.