Residents of Peachtree City and Tyrone lost another local bank with the June 26 closing of Neighborhood Community Bank (NCB) by the Georgia Department of Banking and Finance (DBF). The Newnan-based bank also operated two branches in Coweta County. NCB deposit accounts were transferred to CharterBank of West Point.

CharterBank assumed $191 million of the failed bank’s deposits and bought about $210 million of the bank’s assets of approximately $222 million, according to a news release from the Federal Deposit Insurance Corp. (FDIC). “The FDIC will retain the remaining assets for later disposition.”

Depositors were able to access their accounts at the former main office and branch locations of Neighborhood Community Bank beginning June 27, according to a state DBF news release.

“Customers of both banks should continue to use their existing branches until CharterBank can fully integrate the deposit records of Neighborhood Community Bank. Additionally, the former depositors of Neighborhood Community Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions,” the news release said.

NCB began operations in April 2000. Newnan Coweta Bancshares, Inc., Newnan, Ga., is the holding company for the failed bank. The FDIC and CharterBank joined in a loss-share transaction on about $178.5 million of NCB’s assets.

Bank officers were listed as Karen P. Duffey, J. Randal McKoon and David M. Bybee, according to the NCB website on June 24. The bank’s directors included Joe S. Crain, Jr., Otis F. Jones III, David LaGuardia, Dr. Bob B. Mann, Jr., Theo Mann, J. Walker Moody, James Van S. Mottola, Melvin Samuels, Donald L. Sprayberry, Jr., Jennifer J. Thomasson and Woodie T. Wood, Jr.

“CharterBank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers,” the FDIC said.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $66.7 million. “CharterBank’s acquisition of all the deposits was the ‘least costly’ resolution for the FDIC’s DIF compared to alternatives. Neighborhood Community Bank is the 42nd FDIC-insured institution to fail in the nation this year, and the ninth in Georgia,” the FDIC said.

Customers who have questions about the bank closing can call the FDIC toll-free at 1-888-408-4360. The phone number will be operational on Saturday from 9 a.m. to 6 p.m., EDT; on Sunday from noon to 6 p.m., EDT; and thereafter from 8 a.m. to 8 p.m., EDT. Interested parties can also visit the FDIC’s Web site by clicking here.

login to post comments