he Georgia Department of Banking and Finance took possession of Security Exchange Bank, Marietta, Georgia on June 15, 2012.  The Superior Court of Cobb County issued an Order appointing the Federal Deposit Insurance Corporation as Receiver of the Bank effective upon the Department taking possession of Security Exchange Bank.

The Department took possession of Security Exchange Bank pursuant to the Official Code of Georgia, Section 7-1-150(a) which authorizes the Department in its discretion to take possession of the business and property of any state-chartered financial institution whenever such financial institution is either insolvent or operating in an unsafe or unsound condition to transact its business, is operating in violation of any court order, statute, rule or regulation, or requests the Department to take possession of its business and property. 

Through an agreement with the FDIC, Security Exchange Bank will be acquired by Fidelity Bank, Norcross, Georgia.

All deposit accounts of Security Exchange Bank have been transferred to Fidelity Bank and will be available immediately. Depositors will be able to access their accounts at the former main office and branch location of Security Exchange Bank during regular business hours. Customers of both banks should continue to use their existing branches until Fidelity Bank can fully integrate the deposit records of Security Exchange Bank. Additionally, the former depositors of Security Exchange Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions. 

All deposits will be transferred to Fidelity Bank and, therefore, it is not anticipated that there will be any loss exposure to former Security Exchange Bank depositors that have deposits exceeding the FDIC Deposit Insurance amounts. 

The Department’s Commissioner, Robert M. Braswell, reminds depositors that deposits of all Georgia banks are insured by the FDIC up to $250,000. Special rules are in place for accounts held in trust status and joint accounts that may further expand deposit insurance coverage.  Additional information on FDIC Deposit Insurance may be found at www.fdic.gov.

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