Monday, July 21, 2014
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Community & Southern Bank is now operating the former Eastside Commercial Bank, located at the corner of Parker Road and Iris Drive. The Georgia Department of Banking & Finance closed Eastside Commercial Bank Friday and Atlanta-based Community & Southern Bank has assumed all of Eastside’s deposits. (Staff photo: Aimee Jones)
CONYERS — Conyers-based Eastside Commercial Bank was closed Friday by the Georgia Department of Banking & Finance, according to a press release from the Federal Deposit Insurance Corporation.
Eastside Commercial Bank opened in 2005 and had branches in Conyers and in Duluth. The two branches will reopen as branches of Community & Southern Bank and depositors of Eastside Commercial will automatically become depositors of Community & Southern, the FDIC states.
“Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits,” the press release states. “Customers of Eastside Commercial Bank should continue to use their current branch until they receive notice from Community & Southern Bank that systems conversions have been completed to allow full-service banking at all branches of Community & Southern Bank.”
Depositors at Eastside can continue to access their money through checks, debit cards or ATMs, the release states, and loan customers should continue to make payments as usual.
Eastside Commercial Bank began to experience difficulty when the recession hit and adversely affected the residential construction industry. At the end of 2008, the FDIC examined Eastside Commercial Bank and imposed a cease and desist order, which required the bank to comply with a number of mandates, such as raising capital, reducing problem assets and ceasing any additional loans to problem loan holders.
The closing of Eastside Commercial Bank marks the first Georgia bank to fail in more than a year, according to an article in the Atlanta Journal-Constitution.
At the end of March, Eastside Commercial Bank had approximately $169 million in total assets and $161.6 million in total deposits. In addition to assuming all of Eastside’s deposits, Community & Southern Bank will purchase approximately $104.7 million of Eastside’s assets. Macon-based State Bank and Trust Company will purchase $42.6 million of the bank’s loans while the FDIC will retain the remaining assets for later disposition, the release states.