'Business as Usual' at Former North Georgia Bank

Former customers filed into the Watkinsville branch Monday during its first weekday under new ownership, days after .

The Federal Deposit Insurance Corporation gave BankSouth, headquartered in Greensboro, control over the bank's accounts and deposits, allowing former North Georgia Bank customers to make transactions at the bank's main office at 7911 Macon Highway and Athens branch at 455 Epps Bridge Parkway.

For the most part, customers were unaffected by the changes and used their old debit cards and checks to conduct business, BankSouth President Harold Reynolds said.

“From everything I've heard so far, business has gone as usual and everything has gone well,” Reynolds said. “Unfortunately, the FDIC has had a lot of practice with this, and it really is just pretty smooth and seamless.”

Customers visiting the bank Monday weren't surprised to hear that it was under new management, as more than 50 banks throughout the state have shuttered their doors since 2008, due in part to a large number of defaulted loans from developers following a real-estate collapse and economic recession.

“It's kind of halfway expected because there's so many bank failures in the area and the state and the country,” said Dale Johnson, a construction worker from Watkinsville, who visited the bank Monday.

Construction had virtually ground to a halt in fast-growing Oconee County, and played a role in the closure of North Georgia Bank after only 11 years of existence, Oconee County Commission Chairman Melvin Davis said.

In 2006, the Oconee County government awarded up to 450 building permits for single family homes. Last year, the county awarded 69, Davis said.

Davis serves as vice chairman for the Oconee Industrial Development Authority. The authority's board-appointed chairman, Charles E. "Chuck" Williams, was president of North Georgia bank.

 “It's a tough situation to see local individuals who have invested a lot in the community lose an investment, but if a local bank had to fail, I'm pleased to see a bank in close proximity to Oconee County taking over because of their knowledge of Oconee County," Davis said. “We look forward to them being a strong community supporter as North Georgia Bank was.”

Under the transition, BankSouth purchased $123.9 million of the failed bank's assets, including all of the loans. The FDIC said it will cost the Deposit Insurance Fund $35.2 million.

To acquire the bank's assets, BankSouth underwent a competitive bidding process and review to ensure it could take on additional accounts and provide services to customers, Reynolds said.

“We really felt like this was the best fit for us, so we're in good financial shape,” Reynolds said. “We're very profitable and we see this as an opportunity to strengthen our bank, and we're certain it will.”

As for North Georgia Bank's 28 employees, Reynolds couldn't say yet whether they'd be rehired as BankSouth employees.

“We're working to maintain that continuity,” Reynolds said. “We appreciate what they've done, and obviously anyone that's had to go through market conditions like these and have gone through this process and continues to provide great service, that doesn't go to waste on me.

"These are quality people and we want to find a place for them in our organization.”

Tim Woodworth, a sales manager from Watkinsville who had business at the bank Monday, said the kind of customer service the new ownership delivers will help determine its success.

"If they still offer that same hometown feel, I'll continue to do business with them," he said.