American Southern Bank
American Southern Bank had total assets of approximately $112 million and total deposits of $104 million. Bank of North Georgia paid the FDIC a small premium to take over all of the failed bank's retail deposits and branches.
American Southern Bank's office was set to reopen Monday as a branch of Bank of North Georgia.
American Southern Bank also had $48.7 million in brokered deposits, which the FDIC was to pay directly to brokers. This process of returning brokered deposits to customers usually takes a few weeks. Brokers are required to complete paperwork for the FDIC receivership, because brokered deposit accounts are usually kept at a bank only in the broker's name.Bank of North Georgia also took over about $31 million of the failed bank's assets. The FDIC retained the rest for later disposition and estimated the cost to its insurance fund would be $41.9 million. TheStreet.com Ratings had assigned American Southern Bank an E-minus (Very Weak) financial strength rating in March, downgrading the institution from an E-plus, which was assigned in September. The failed bank was recently included in TheStreet.com's list of Georgia banks with the weakest asset quality. Like most of the other failed Georgia banks and thrifts, American Southern Bank had made outsized bets on construction and development loans in the Atlanta area during the real estate boom.