EASLEY — On Friday, Easley-based CommunitySouth Bank and Trust was closed by the South Carolina Board of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
CertusBank, N.A., a wholly-owned subsidiary of Blue Ridge Holdings, Inc., assumed all non-brokered deposits and purchased substantially all assets with the assistance of the FDIC.
This is a common method of protecting deposits held by failed institutions. Insured depositors of the failed bank immediately become depositors of the healthy bank and have immediate access to their insured funds.
According to FDIC representatives, “CommunitySouth had a large volume of commercial real estate and development loans that had gone bad and were unable to be repaid. As a result, the losses suffered on that portfolio caused their capital to be eroded. Once a bank’s capital is gone, they are technically insolvent.”
All former CommunitySouth deposit customers will automatically became depositors of CertusBank, N.A. The six branches continue to open during normal business hours, allowing customers full access to their deposits, which continue to be insured up to $250,000 by the FDIC.
“We are pleased to welcome CommunitySouth’s customers to CertusBank, N.A,” said K. Angela Webb, Senior Executive Vice President and Chief Administrative Officer for CertusBank. “We want to assure all former CommunitySouth customers that their deposits are safe and accessible. It is our intention to hire 99 percent of all employees so they will be greeted by the same familiar faces. Existing checks, debit cards, ATM cards and online banking will continue to work, allowing customers to access their money without disruption. Checks drawn on the bank will continue to be processed and loan customers should continue to make their payments as usual.”
Deposits in non-interest bearing transaction accounts are insured in full by the FDIC through December 31, 2012. This insurance is both in addition to, and separate from, the $250,000 coverage available under the FDIC’s general deposit insurance rules.
Within seven business days, CommunitySouth deposit customers should receive a letter providing additional details concerning their accounts. In addition, CertusBank representatives will be at all bank branches to assist customers with any questions.
“Literally nothing has changed but the name and the capital structure,” said Walter Davis, Vice Chairman and Chief Credit Officer of CertusBank, a Greenville native. “We want them to know that their money is safe. It’s safer than it ever has been. We are a strong financial institution. We plan on staying strong and we want customers to keep doing business with the same people that they’ve been doing business with before.”
CertusBank, N.A. is building a strong, sustainable, best-in-class banking franchise focused on exceptional customer service.
“We’re truly excited to have a presence in Upstate South Carolina,” Davis said. “It has one of the strongest economies in the southeast and we believe that it has a great deal of future potential. The people and quality of life are second to none. We look forward to being an integral part of the community.”
In an effort to ensure that this transition is as smooth as possible, customers can visit www.certusbank.com for answers to many frequently asked questions or they can speak with a customer service representative by calling 1-800-596-7100.
Customers and other interested stakeholders can learn more about the terms of the transaction by contacting the FDIC toll free at 1-877-ASK-FDIC or at www.fdic.gov.