NEWS - Banking & Finance

Oct 24 – Macon’s State Bank and Trust Company Assumes Community Capital’s Deposits

SBJ Staff Report

Oct 24, 2011 - Community Capital Bank of Jonesboro was closed Friday by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, bringing the bank closings in Georgia to 22 banks.

To protect the depositors, the FDIC entered into a purchase and assumption agreement with State Bank and Trust Company, chartered in Macon, to assume all of the deposits of Community Capital Bank.

The two branches of Community Capital Bank remained open during their normal business hours beginning last Saturday as branches of State Bank and Trust Company. Depositors of Community Capital Bank will automatically become depositors of State Bank and Trust Company.

As of June 30, 2011, Community Capital Bank had approximately $181.2 million in total assets and $166.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, State Bank and Trust Company agreed to purchase essentially all of the assets.

The FDIC and State Bank and Trust Company entered into a loss-share transaction on $141.3 million of Community Capital Bank's assets. State Bank and Trust Company 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 FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $62.0 million. Compared to other alternatives, State Bank and Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Community Capital Bank is the 83rd FDIC-insured institution to fail in the nation this year, and the twenty-second in Georgia. Decatur First Bank of Decatur, a an FDIC-insured institution, was also closed on Friday.