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Saturday, Jul. 25, 2009

Security Bank's six banks shut down, to reopen

Macon-based Security Bank Corp.’s six bank subsidiaries were shut down by the government Friday evening.

The failed banks were closed by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corp. as the receiver.

“In this situation, there is a favorable result,” Linda Beavers, regional ombudsman for the FDIC, said outside the locked doors of the main office on Forsyth Road.

The six banks — which include Security Bank of Macon, Security Bank of Houston County and Security Bank of Jones County — are being bought by State Bank and Trust Co. of Pinehurst. State Bank plans to move its headquarters to Macon, the bank’s chairman said.

Joe Evans, State Bank’s chairman and CEO, said all customers’ deposits and loans will be protected. His comments came shortly after Security’s employees were notified of the planned purchase.

The bank’s branches that normally are open on Saturdays will reopen today as branches of State Bank and Trust. The other locations will reopen under that name Monday. Customers may access their money this weekend by writing checks or using their ATM or debits cards, according to banking officials and the FDIC.

Rebecca Ghrist, a Security Bank customer for 15 years who arrived at the bank late Friday, said she wasn’t worried about her money.

“I know it will be fine,” she said.

Evans, who is originally from Smarr, said the turn of events was “like a homecoming for us.”

“Like so many banks in our area, the recession and particularly the real estate downturn created serious issues for so many banks,” he said. “(Security) is made up of good people that we know and trust, and there will be roughly $300 million of fresh capital that we’ve injected into State Bank and Trust.

“I believe we are arguably the strongest, best capitalized bank in Georgia at this point,” he said. “We look forward to doing business here.”

Other new officers include Dan Speight Jr. as vice chairman of the bank. He is associated with Macon-based law firm of James, Bates, Pope and Spivey. Kim Childers, chief credit officer, has worked at banks in Middle Georgia and serves on several civic and nonprofit boards in Peach County.

Evans, Speight and Childers were at the Forsyth Avenue office Friday afternoon with Tony Collins, Security’s former CEO and president.

While all the details have not been worked out, Collins “will be one of the senior officers of State Bank,” Evans said.

Security Bank’s mortgage company — Security Real Estate Services Inc. — is not part of the purchase and remains in control of the FDIC.

Allen Huckabee, who said he was a friend of one of Security Bank’s founders, stopped by the bank’s headquarters about 5:30 p.m. Friday and described it as a “sad day.”

He said he sold his stock in the bank a couple of months ago.

“I wish I had divested myself of the stock a few years back,” Huckabee said.

The stock ended at 24 cents a share Friday from a 52-week high of $5.79 a share.

As of March 31, the six banks had total assets of $2.8 billion and total deposits of about $2.4 billion.

State Bank and Trust will assume all of the bank’s deposits and acquire $2.4 billion in assets, while the FDIC will retain the remaining assets for “later disposition,” the release said.

Security Bank had been operating under increased federal regulations and control since April, when the FDIC issued a “cease and desist” order requiring the bank to boost its capital levels and end “unsafe and unsound business practices.”

Evans said Security Bank has 250 to 275 employees. Asked what would happen to those workers, he said, “We have a lot of things to figure out going forward.”

Security Bank’s failure Friday brings the number of failed banks in Georgia this year to 16. Nationally, the number stands at 64 for 2009.

Telegraph staff writers Rodney Manley and Grant Blankenship contributed to this report.

To contact Linda S. Morris, call 744-4223.