Community Bank and Trust founded in 1900 closed down

Toronto News.Net
Friday 29th January, 2010

Community Bank and Trust, in Cornelia, Georgia, has joined the list of failed U.S. banks.

Community Bank and Trust was the oldest bank in Habersham County and one of the oldest financial institutions in Northeast Georgia. Founded in 1900, the bank celebrated its 100th Birthday in the Year 2000, and would have celebrated its 110th anniversary this year.

Considered a banking "pioneer" by many in the financial services industry, Community Bank & Trust was the first bank to establish a Trust Department; first to offer Discount Brokerage Services; first to install Automated Teller Machines (ATMs); and the first bank in the Nation to license the Supermarket Banking concept. Its subsidiary, Financial Supermarkets, Inc., was also the first company to introduce in-store banking in Europe.

Unfortunately the proud history of Community Bank and Trust has come to a tragic end. The Georgia Department of Banking and Finance shut the bank down on Friday.

The Federal Deposit Insurance Corporation (FDIC) was engaged as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with SCBT, N.A., Orangeburg, South Carolina, to assume all of the deposits of Community Bank and Trust.

The 36 branches of Community Bank and Trust in Habersham, Hall, White, Rabun, Stephens, Jackson, Banks, Barrow, Oconee, Towns, Troup, and Muscogee Counties in Georgia, as well as banking centers in Autauga, Bullock and Montgomery Counties in Alabama, will reopen during normal business hours as branches of SCBT, N.A., but will continue to conduct business under the name Community Bank and Trust. Depositors of Community Bank and Trust will automatically become depositors of SCBT, N.A. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage, the FDIC announced on Friday. Customers should continue to use the former Community Bank and Trust branch until they receive notice from SCBT, N.A. that it has completed systems changes to allow other SCBT, N.A. branches to process their accounts as well.

Over the weekend, depositors of Community Bank and Trust 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, the FDIC advised.

As of September 30, 2009, Community Bank and Trust had approximately $1.21 billion in total assets and $1.11 billion in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $354.5 million.

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