Community & Southern Bank assumes deposits of Eastside
by MDJ staff
July 22, 2014 05:39 PM | 1669 views | 0 0 comments | 8 8 recommendations | email to a friend | print
Eastside Commercial Bank in Conyers was closed Friday by the Georgia Department of Banking & Finance, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank in Atlanta, which has two locations in Cobb County, to assume all of the deposits of Eastside Commercial Bank.

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 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 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.

Depositors of Eastside Commercial Bank can continue 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 March 31, Eastside Comm-ercial Bank had approximately $169 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 in Macon to purchase $42.6 million of Eastside Commercial Bank’s loans. The FDIC will retain the remaining assets for later disposition.

Customers with questions about the transaction should call the FDIC toll-free at 1-800-894-5183. Customers can also visit the FDIC’s web site at www.fdic.gov/bank/individual/failed/eastside.html.

The FDIC estimates that the cost to the Deposit Insurance Fund 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 in Valdosta on May 10, 2013.

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