December 17, 2010 – United Americas Bank, National Association, Atlanta, Georgia, was closed today by The Office of the Comptroller of the Currency, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with State Bank and Trust Company, Macon, Georgia, to assume all of the deposits of United Americas Bank, N.A.
United Americas, founded in 1999, was a two branch bank which proclaimed itself to be the leading Hispanic bank in Georgia, according to the bank’s website.
United Americas Bank is a full service community bank founded in 1999, which specializes in commercial banking services for small to mid-size businesses. The diversity of its directors coupled with a multicultural staff of bilingual employees has positioned United Americas Bank as the leading Hispanic bank in the State of Georgia.
The Bank has reached out to the various immigrant communities by way of its multicultural staff and innovative products; nonetheless, the Bank strives to be an inclusive organization by serving the many communities in the niche markets where it is present.
At September 30, 2010, United Americas had total assets of $242.3 million and total deposits of $193.8 million. State Bank did not pay the FDIC a premium for United Americas’ deposits and agreed to purchase all of the failed bank’s assets. State Bank will be protected from loss on its purchase of United Americas assets through a loss-share transaction entered into with the FDIC which covers $195.8 million of the purchased assets.
State Bank & Trust Company opened in 2005, funded by private investment capital, and has experienced exponential growth by acquiring numerous failed banks in FDIC assisted transactions. Today’s acquisition of United Americas is the 10th failed bank acquisition made by State Bank over the past two years. According to a press release by State Bank, they are one of the best capitalized banks in Georgia.
State Bank Financial Corporation is the holding company for State Bank & Trust Company, one of Georgia’s best-capitalized banks, with over $2.6 billion in assets throughout Middle Georgia and Metro Atlanta. State Bank has locations in Metro Atlanta, as well as Bibb, Houston, Dooly, and Jones counties in Middle Georgia.
In 2009, State Bank acquired assets and deposits of the six bank subsidiaries of Security Bank Corporation, The Buckhead Community Bank and First Security National Bank in transactions facilitated by the Federal Deposit Insurance Corporation. In 2010, State Bank acquired assets and deposits of NorthWest Bank & Trust of Acworth, Georgia.
State Bank raised $300 million in capital, including investments from the executive management team, to facilitate its acquisitions.
Separately, State Bank also announced net income of $9.6 million in the quarter ended June 30, 2010. Return on average assets for the quarter was 1.5%, while return on average equity was 11.7%. State Bank reported earnings-per-share of $0.30 for the second quarter of 2010 and a book value of $10.62 per share.
Total assets at the end of the second quarter were $2.6 billion, while total deposits were $2.2 billion. Shareholders’ equity at June 30 was $335.0 million, representing 12.9% of total assets.
“Despite the current challenging economic environment, State Bank has delivered solid earnings as we continue to manage the loss share protected assets we acquired from the FDIC over the last year,” said Joe Evans, Chairman and CEO of State Bank. “
Since July 2009, State Bank has completed nine failed bank acquisitions from the FDIC. As a result of the acquisitions, State Bank is a market leader in Middle Georgia and has a significant presence in Metro Atlanta.
The failure of United Americas Bank will result in an estimated loss to the FDIC Deposit Insurance Fund of $75.8 million. United Americas is the 155th banking failure this year and the 21st in Georgia, which has the most banking failures in the nation after Florida.