The First National Bank of Barnesville, Barnesville was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with United Bank, Zebulon, Georgia, to assume all of the deposits of The First National Bank of Barnesville.
The two branches of The First National Bank of Barnesville will reopen on Saturday as branches of United Bank. Depositors of The First National Bank of Barnesville will automatically become depositors of United 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 the applicable limits.
Customers of The First National Bank of Barnesville should continue to use their existing branch until they receive notice from United Bank that it has completed systems changes to allow other United Bank branches to process their accounts as well.
This evening and over the weekend, depositors of The First National Bank of Barnesville 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 June 30, 2010, The First National Bank of Barnesville had approximately $131.4 million in total assets and $127.1 million in total deposits. United Bank did not pay the FDIC a premium for the deposits of The First National Bank of Barnesville. In addition to assuming all of the deposits, United Bank agreed to purchase essentially all of the failed bank’s assets.
The FDIC and United Bank entered into a loss-share transaction on $107.3 million of The First National Bank of Barnesville’s assets. United Bank 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.