Banking officials arrive outside Community Bank of Rockmart before shutting down the six-year-old local bank, which will reopen Saturday as a branch of Century Bank of Georgia. Pictured at right are Kevin B. Hagler, deputy commissioner for supervision, Georgia Department of Banking and Finance; and Richard E. Drews Jr., Chief Executive Officer of Century Bank of Georgia. (Lowell Vickers/thepolkfishwrap.com)
Banking regulators arrive at Community Bank of Rockmart Thursday afternoon to facilitate the closing of the bank and the transfer of its assets to Century Bank of Georgia, which entered a purchase and assumption agreement with the Federal Deposit Insurance Corporation. (Lowell Vickers/thepolkfishwrap.com)
Banking officials wheel storage containers and other equipment into the Community Bank of Rockmart around 5:05 p.m. Thursday. The locally owned bank will now be a branch of Century Bank of Georgia.(Lowell Vickers/thepolkfishwrap.com)
The FDIC posted a notice to their website at 5:01 p.m. Thursday.
The bank is closed Friday for Veterans Day but will reopen Saturday for normal drive-through operations, 8:30 a.m. to noon.
Richard E. Drews Jr., chief executive officer of Century Bank, said bank signage will be changed very soon, possibly by Monday, and the bank’s solitary location at 1400 Chatahoochee Drive, Rockmart, will become a branch of Century Bank.
“Our bank already conducts business in these markets and many of our team members live in these markets and have longterm relationships in this community,” Drews said. “We look forward to meeting each of our new customers and building on the foundation of customer service that Community Bank of Rockmart began.”
The Superior Court of Polk County issued an order appointing the Federal Deposit Insurance Corporation as receiver. In a statement that referred to Community Bank of Rockmart as “a failed bank,” the FDIC noted that the Code of Georgia, Section 7-1-150(a) authorizes the GDBF to take possession of any state chartered financial institution that “is either insolvent or operating in an unsafe or unsound condition to transact its business.”
Booker T. Shorter, of the FDIC’s Office of Ombudsman, said the Rockmart bank’s troubles were tied to the real estate collapse of recent years.
“They invested heavily in commercial real estate,” Shorter said.
Creditors were unable to pay and the bank had to charge off loans valued at millions of dollars, he said.
GDBF officials arrived at the bank around 4:35 p.m. Thursday and met with bank officials in an upstairs conference room. At 5 p.m. the bank was shut down, and FDIC officials arrived on site with security officers and a van carrying what appeared to be storage cases and computer equipment.
Prepared statements were simultaneously posted to the FDIC’s website and sent to area media.
According to the FDIC, Community Bank of Rockmart is the 88th FDIC-insured institution to fail in the nation this year, and the 23rd in Georgia.
The FDIC said the Rockmart bank had approximately $62.4 million in total assets and $55.9 million in total deposits as of Sept. 30, 2011.
“In addition to assuming all of the deposits, Century Bank of Georgia agreed to purchase approximately $40.7 milion of the failed bank’s assets,” an FDIC statement reads. “The FDIC will retain the remaining assets for later disposition.”
The FDIC said the estimated cost of the bank’s failure to the Deposit Insurance Fund will be $14.5 million.
The FDIC also stressed that all depositors’ accounts are safe and secure.
“No depositor has lost their money since the FDIC was formed in 1933,” Shorter said.
Formation of Community Bank of Rockmart began in early 2004. The founders of the bank launched a stock sale on Oct. 15, 2004, making available 600,000 shares of common stock at a cost of $10 per share. The minimum purchase was 500 shares ($5,000).
The bank opened in a temporary location at 550 W. Elm St. on May 9, 2005. One year later, a ground-breaking ceremony was held March 9, 2006 at the location of the bank’s permanent building at 1400 Chattahoochee Drive.
A brief handed out by the FDIC makes the following additional points:
No losses: No one lost any money on any deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to Century Bank of Georgia.
Access: Customers may continue to use their checks. ATM/debit cards will continue to work as usual. The total balance of accounts has been transferred to the new bank and will be available for transactions during normal business hours.
Direct deposits: All direct deposits, for example, payroll checks, Social Security, veteran benefits, welfare, disability and unemployment, as well as any other payment received electronically, will continue as usual.
Autopayments/online banking: These services will continue as usual. Your routing number and account number will remain the same until you are notified in writing by the new bank.
Interest rates: Interest on deposits accrued through close of business the day the bank was closed will be paid at the existing rate. Current rates will be reviewed by the new bank. Customers may withdraw funds from any transferred account without early withdrawal penalty until they enter into a new deposit agreement.
Safe deposit boxes: Customers may continue to access safe deposit boxes during normal business hours. Any changes will be communicated by the new bank.
Overdraft lines of credit: These lines have been transferred to the new bank. Customers should contact Century Bank of Georgia if they have additional questions.
Loan payments: Payments should continue to be made according to the terms of the written contract. Payment may be made at the Rockmart branch office or mail to the same payment address as before, with checks made payable to the Community Bank of Rockmart.
Further information: Customers are invited to call Century Bank of Georgia in Cartersville at (770) 387-1922 for answers to other questions concerning accounts. The bank’s website is www.centurybanknet.com. The new bank is also mailing letters to all deposit customers providing additional details concerning their accounts.
Shares of stock: Shareholders of the failed institution have a claim against the receivership. However, they have the lowest priority of claim, the FDIC said. Shareholders are advised to discuss the matter with an accountant and/or the IRS concerning the requirements necessary to recognize the investment as a loss for tax purposes.
Claims: As receiver, the FDIC is handling claims against Community Bank of Rockmart for unpaid bills. Claims should be mailed to:
FDIC as Receiver for Community Bank of Rockmart
7777 Baymeadows Way West
Jacksonville, FL 32256
ATTN: Claims Agent
Claims for unpaid bills may also be sent to the FDIC by email at: Jacksonvillecreditclaims@fdic.gov.
Other questions may be directed to the FDIC call center at 800-528-6215.
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