From the FDIC:
Montgomery Bank & Trust, Ailey, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Ameris Bank, Moultrie, Georgia, to assume all of the deposits of Montgomery Bank & Trust.
The two branches of Montgomery Bank & Trust will reopen on Monday as branches of Ameris Bank. Depositors of Montgomery Bank & Trust will automatically become depositors of Ameris Bank. [. . .]
As of March 31, 2012, Montgomery Bank & Trust had approximately $173.6 million in total assets and $164.4 million in total deposits. In addition to assuming all of the deposits of the failed bank, Ameris Bank agreed to purchase approximately $12.4 million in assets, comprised mainly of cash and cash equivalents. The FDIC will retain the remaining assets for later disposition. [. . .]
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $75.2 million. Compared to other alternatives, Ameris Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Montgomery Bank & Trust is the 32nd FDIC-insured institution to fail in the nation this year, and the sixth in Georgia. The last FDIC-insured institution closed in the state was Security Exchange Bank, Marietta, on June 15, 2012.
A few quick points:
- Ameris Bank has now acquired at least 9 failed banks since fall 2009 (8 in Georgia, 1 in Florida).
- The pace of failures has fallen dramatically in 2012 compared to 2011 — twice as many banks in the country had failed by this point in 2011.
- Georgia’s political leadership has not taken any substantive steps to determine whether state policies contributed to our leading the nation in bank failures.
- After subtracting this failure, there are 68 Georgia banks on the unofficial problem bank list published by Calculated Risk and maintained by Suferdude808 using FDIC public actions.
The Securities and Exchange Commission said Monday it has received a federal court order to freeze the assets of Aubrey Lee Price, and several associated businesses.
In a 22-page letter to investors, Price allegedly admitted he made false statements to conceal losses of $20 million to $23 million.
Regulators said Price told clients he was investing their money in traditional stocks, but he also put money into “illiquid” bets including South American real estate and shares of Montgomery Bank & Trust.
Tens of millions of dollars were placed into an account at Goldman Sachs, which suffered heavy losses, the SEC complaint said.
William P. Hicks, associate director of the SEC in Atlanta, said Price “made woeful financial transactions” that he hid from his investors.
“Now both the money and Price are missing,” Hicks said.