West Point, Georgia-based Charter Bank, a wholly-owned subsidiary of Charter Financial Corporation, has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase the assets and assume the deposit liabilities of Neighborhood Community Bank (NCB).
The Georgia Department of Banking and Finance has appointed the FDIC as receiver. The FDIC then assigned the assets and deposit liabilities of Neighborhood Community Bank to Charter Bank under a loss sharing agreement.
Robert Johnson, CEO of Charter Financial Corporation, said: “We are delighted to welcome the customers of Neighborhood Community to the Charter Bank family of valued customers. It is our objective to make this transition as transparent and easy as possible for both Neighborhood Community customers and employees. Because Charter Bank elected to assume both insured and non-insured deposits, no customers of Neighborhood Community Bank will lose any of their deposits.”
“Under the loss sharing agreement the FDIC will reimburse Charter Bank for a percentage of the losses on Neighborhood Community Bank’s loans and foreclosed properties. Also, as part of the loss sharing agreement, the acquired assets receive a favorable treatment for regulatory capital purposes so the impact on our regulatory capital ratios will be modest,” he added.
