Georgia’s Alpha Bank & Trust is 16th U.S. Bank Failure in 2008

October 24, 2008 by · Leave a Comment
Filed under: Bank Failure 

Another one bites the dust……..  Alpha had $346 million dollars in customer deposits at the time.  This marks the 16th failure this year.  Streans Bank of Minnesota will assume the deposits for this failed bank.

FDIC Release:

Alpha Bank and Trust, Alpharetta, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume the insured deposits of Alpha Bank & Trust.

The two branches of Alpha Bank & Trust will open on Monday, October 27, 2008 as Stearns Bank, N.A. Depositors of the failed bank will automatically become depositors of Stearns Bank, 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.

Over the weekend, customers of Alpha Bank & Trust can access their insured deposits 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 September 30, 2008, Alpha Bank & Trust had total assets of $354.1 million and total deposits of $346.2 million. Stearns Bank did not pay the FDIC a premium for the right to assume the failed bank’s insured deposits.

At the time of closing, there were approximately $3.1 million in uninsured deposits held in approximately 59 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

Alpha Bank & Trust also had approximately $16.8million in brokered deposits that are not part of today’s transaction. The FDIC will pay the brokers directly for the amount of their insured funds.

Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-800-591-2912 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m. EST; on Saturday from 9:00 a.m. to 5:00 p.m. EST; and Sunday 12:00 EST to 5:00 EST and thereafter from 8:00 a.m. to 8:00 p.m. EST.

Customers who would like more information on today’s transaction should visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/alpha.html.  

 

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