While there was not a Community South Bank in Murfreesboro, some new residents have already told WGNS that they were Community South customers. Community South is the latest bank to close because of a troubled economy, according to the FDIC. One of their nearby locations was in Spring Hill, Tennessee.
Community South Bank, Parsons, Tennessee, was closed today by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CB&S Bank, Inc. Russellville, Alabama, to assume all of the deposits of Community South Bank.
The 15 branches of Community South Bank will reopen as branches of CB&S Bank, Inc. during their normal business hours. Depositors of Community South Bank will automatically become depositors of CB&S Bank, Inc. 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.
Customers of Community South Bank should continue to use their existing branch until they receive notice from CB&S Bank, Inc. that it has completed systems changes to allow other CB&S Bank, Inc. branches to process their accounts as well.
This evening and over the weekend, depositors of Community South Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of June 30, 2013, Community South Bank had approximately $386.9 million in total assets and $377.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, CB&S Bank, Inc. agreed to purchase approximately $121.7 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
Need More Information?
Customers with questions about today's transaction should call the FDIC toll-free at 1-800-883-4390. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m.,CDT; on Monday from 8 a.m. to 8 p.m., CDT; and thereafter from 9:00 a.m. to 5:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/communitysouth.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $72.5 million. Compared to other alternatives, CB&S Bank, Inc.’s acquisition was the least costly resolution for the FDIC's DIF. Community South Bank is the 19th FDIC-insured institution to fail in the nation this year, and the second in Tennessee. The last FDIC-insured institution closed in the state was Mountain National Bank, Sevierville, on June 7, 2013.
Source:
Greg Hernandez, Spokesperson with the FDIC
