Eastside Commercial Bank, of Conyers, was closed Friday, July 18 by the Georgia Department of Banking & Finance. Customers of Eastside Commercial Bank will now become customers of Community & Southern Bank, of Atlanta, which agreed to purchase Eastside's deposits and some of its assets.
Eastside Commercial Bank customers can continue to access their money through checks or ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
The two branches of Eastside Commercial Bank will reopen as branches of Community & Southern Bank during their normal business hours. Depositors of Eastside Commercial Bank will automatically become depositors of Community & Southern Bank. Deposits will continue to be insured by the Federal Deposit Insurance Corporation. Customers of Eastside Commercial Bank should continue to use their current branch until they receive notice from Community & Southern Bank that systems conversions have been completed to allow full-service banking at all branches of Community & Southern Bank.
The FDIC had ordered Eastside Commerical Bank to improve its capital reserves in 2009.
The FDIC was appointed as receiver by the Ga. Dept. of Banking and Finance. The FDIC then entered into the purchase and assumption agreement with Community & Southern Bank.
As of March 31, 2014, Eastside Commercial Bank had approximately $169.0 million in total assets and $161.6 million in total deposits. In addition to assuming all of the deposits of Eastside Commercial Bank, Community & Southern Bank agreed to purchase approximately $104.7 million of the failed bank's assets.
In a separate transaction, the FDIC will enter into an agreement with State Bank and Trust Company, Macon, Ga., to purchase $42.6 million of Eastside Commercial Bank's loans. The FDIC will retain the remaining assets for later disposition.
The FDIC had been appointed as receiver and the FDIC entered into a purchase and assumption agreement with Community & Southern Bank.
The FDIC estimated that the cost to the Deposit Insurance Fund (DIF) will be $33.9 million. Compared to other alternatives, Community & Southern Bank's acquisition was the least costly resolution for the FDIC's DIF.
Eastside Commercial Bank is the 13th FDIC-insured institution to fail in the nation this year, and the first in Georgia. The last FDIC-insured institution closed in the state was Sunrise Bank, Valdosta, on May 10, 2013.
Customers with questions can call the FDIC toll-free at 1-800-894-5183, Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9 a.m. to 5 p.m., EDT or visit www.fdic.gov/bank/individual/failed/eastside.html.
