Staff, wire reports
The Valdosta Daily Times
Regulators closed a Valdosta-based bank Friday, with its assets being assumed by the parent company of another Valdosta-area bank.
The Federal Deposit Insurance Corp. seized Sunrise Bank, which had its main office on Woodrow Wilson Drive in Valdosta.
The bank, which also had branches in Atlanta and Jeffersonville, was an affiliate of Capitol Bancorp Limited. Sunrise Bank had about $60.8 million in assets and $57.8 million in deposits.
Synovus Bank, based in Columbus and the parent company of the Valdosta-area First State Bank and Trust Company, agreed to assume all of Sunrise Bank’s deposits and purchase $13.2 million of the failed bank’s assets.
All three branches of Sunrise Bank will reopen Monday as temporary branches of the Synovus Bank divisions in the following markets: Atlanta (Bank of North Georgia), Jeffersonville (CB&T of Middle Georgia), and
Valdosta (First State Bank and Trust Company). These locations will continue to serve the needs of existing Sunrise customers only until accounts are converted to Synovus Bank systems, according to a Synovus press release. At that time, customers will be able to bank with any of Synovus’ existing, locally branded bank locations in their markets.
Beginning Monday, depositors of Sunrise Bank will automatically become depositors of Synovus Bank.
Deposits will continue to be insured by the FDIC up to applicable limits, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage, according to the press release. Customers of Sunrise Bank should continue to use their existing branches until further notice.
Over the weekend, depositors of Sunrise Bank can access their money by writing checks or using ATMs or debit cards. Checks drawn on the bank will continue to be processed, and loan customers should make payments as usual.
The closure of Sunrise Bank, together with Friday’s closure of Pisgah Community Bank in Asheville, N.C., brought the number of U.S. bank failures to 12 for this year. In 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. The FDIC has said 2010 likely was the high-water mark for bank failures from the recession. They declined to a total of 92 in 2011. Last year, bank failures slowed to 51.