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Security Bank Corp. to file for bankruptcy

Two days after Macon-based Security Bank Corp.’s six banks were shut down, the holding company intends to file for bankruptcy, according to a document filed Monday with the Securities and Exchange Commission.

The stock also is expected to be delisted from the Nasdaq.

Late Friday, the banks owned by Security Bank Corp. were closed by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corp. as receiver. The six community banks shut down, with a total of 20 branches, were Security Bank of Bibb County, Security Bank of Houston County, Security Bank of Jones County, and three banks in the Atlanta area.

State Bank and Trust Co. of Pinehurst was approved Friday by the FDIC as the winning bidder of the assets of Security’s banks, and it announced Friday it raised about $300 million in capital to support the acquisition. It plans to move its headquarters to Macon, chairman and CEO Joe Evans said.

The former Security Bank branches opened under the new State Bank name Saturday and are operating normal hours and days.

As a result of the closure of the banks, Security Bank Corp. intends to file “voluntary petitions” in the United States Bankruptcy Court for the Middle District of Georgia “seeking relief under Chapter 7,” according to a Form 8-A filed Monday with the SEC.

“As a result of the company’s intention to file for bankruptcy relief with the court ... the company expects that its common stock will be immediately suspended from trading ... therefore, it is expected that the company’s common stock will be delisted.”

Security Bank Corp.’s legal counsel is working on a response for stockholders, said Tom Woodbery, spokesman for the holding company.

“We are preparing information for shareholders, and it will be available soon,” Woodbery said.

John Pattan, a Macon city employee, said Monday he knows his stock in the bank is lost.

“I invested a large sum — it was over $40,000,” Pattan said.

Funds to buy the stock were part of the money from his wife’s estate after her death more than five years ago, he said. He said he paid about $12-$13 a share and never sold any shares.

“I put the money in the bank on the advice of a very brilliant stockbroker,” he said.

Pattan declined to name the broker, but said he no longer uses his services. “This ex-investor hopes that all of those bank employees will have their jobs and will not be let go,” Pattan said. “I really, really do hope that, regardless of what happens to my money.”

The Form 8-K filing states “as a result of the closure of the banks, the company has minimal remaining tangible assets.”

As the indirect owner of all the bank’s capital stock, “the company would be entitled to the net recoveries, if any,” following the sale of the banks. “However, at this time, the company does not believe that a recovery will be realized.”

Calls Monday to some of the directors of Security Bank Corp. were either not returned or they had no comment.

Because State Bank bought the six banks from the FDIC instead of directly from Security Bank Corp., “that, in effect, wipes out the current shareholders,” said Jimmy Patton, who has had 22 years of banking experience, and is now president and CEO of Patton, Albertson & Miller LLC, a wealth management firm.

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