Decatur First Bank Closes, Fidelity Bank Assumes Deposits

The Georgia Department of Banking and Finance shut down the bank earlier today. The five Decatur First branches will reopen tomorrow as Fidelity Bank branches.

Decatur First Bank was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Fidelity Bank to assume all of the deposits of Decatur First Bank.

The five branches of Decatur First Bank will reopen during their normal business hours tomorrow as branches of Fidelity Bank. Depositors of Decatur First Bank will automatically become depositors of Fidelity. 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 Decatur First Bank should continue to use their existing branch until they receive notice from Fidelity that their other branches can process their accounts as well.

This evening and over the weekend, depositors of Decatur First Bank 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, Decatur First Bank had approximately $191.5 million in total assets and $179.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, Fidelity Bank agreed to purchase essentially all of the assets.

The FDIC and Fidelity Bank entered into a loss-share transaction on $111.5 million of Decatur First Bank's assets. Fidelity 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. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today's transaction should call the FDIC toll-free at 1-800-430-7974. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/decatur.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $32.6 million. Compared to other alternatives, Fidelity Bank’s acquisition was the least costly resolution for the FDIC's DIF. Decatur First Bank is the 82nd FDIC-insured institution to fail in the nation this year, and the twenty-first in Georgia. The last FDIC-insured institution closed in the state was Piedmont Community Bank on Oct. 14.

Helpful Links


Bank Failures in Brief 2011

Historical Statistics on Banking (Database used to track failed banks from present to 1934.)

When a Bank Fails - Facts for Depositors, Creditors, and Borrowers

Bank Failure Process (Summary)

FDIC High-Def B-Roll

Julia Ewen October 21, 2011 at 10:54 PM
This article says nothing about WHY the bank failed. Can anybody enlighten us? Inquiring minds want to know.
Anna Varela October 21, 2011 at 11:37 PM
Greetings, Julia- Federal officials did not offer specifics on why this bank failed. However, the release linked above, "When a Bank Fails," notes, "Generally, a bank is closed when it is unable to meet its obligations to depositors and others." Patch will report additional details as they become available. -- Anna Varela Regional Editor patch.com
Diane Loupe October 22, 2011 at 01:27 AM
Last year, the AJC reported that Decatur First was on the "troubled bank" list "based on a measure of bank health known as the "Texas ratio." " http://decatur.patch.com/articles/decatur-first-bank-closes-fidelity-bank-assumes-deposits#comments


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