Four Es­sex branches sold

The Covington News - - THE SECOND FRONT - STAFF RE­PORTS news@cov­

Com­mu­nity & South­ern Bank (CSB) of At­lanta an­nounced Mon­day that it has en­tered into an agree­ment to pur­chase Es­sex Bank’s Ge­or­gia branches in Lo­ganville, Snel­lville, Grayson and Cov­ing­ton. Un­der terms of the agree­ment, CSB will ac­quire ap­prox­i­mately $192 mil­lion in de­posits and no loans.

Ac­cord­ing to Es­sex, it will sell the four branch of­fices, their fix­tures and fur­nish­ings to CSB for ap­prox­i­mately $5.2 mil­lion, “a slight dis­count to the net book value of those as­sets.” It will sell the de­posits at a pre­mium of 1.33 per­cent, sub­ject to a “good-faith rene­go­ti­a­tion in the event that the amount of de­posits to be sold de­creases by $10 mil­lion prior to the clos­ing of the trans­ac­tion.’’

The trans­ac­tion is ex­pected to close in the

fourth quar­ter, sub­ject to reg­u­la­tory ap­proval. When the trans­ac­tion is closed, each Es­sex branch will be­come a CSB branch.

“We are very pleased to wel­come th­ese new clients to CSB and, in con­junc­tion with Es­sex Bank, to pro­vide them un­in­ter­rupted bank­ing ser­vice,” said Pat Fraw­ley, chief ex­ec­u­tive of­fi­cer of CSB. “CSB shares a com­mon com­mit­ment to cus­tomer ser­vice with Es­sex Bank and we look for­ward to serv­ing our new clients and com­mu­ni­ties.’’

Vir­ginia-based Es­sex, the bank­ing sub­sidiary of Com­mu­nity Bankers Trust Cor­po­ra­tion, had bought its four Ge­or­gia branches from the Fed­eral De­posit In­sur­ance Corp. af­ter Lo­ganville-based Com­mu­nity Bank failed in Novem­ber 2008. Es­sex Bank says it does not ex­pect to record a ma­te­rial gain or loss in con­nec­tion with the trans­ac­tion in 2013. The sale of the Ge­or­gia branches and de­posits is ex­pected to re­sult in an­nual net cost sav­ings of $1.2 mil­lion for the Bank.

The four branches will op­er­ate nor­mally through com­ple­tion of the trans­ac­tion, ac­cord­ing to Es­sex, and cus­tomers do not need to take any ac­tion. Es­sex Bank and CSB will con­tact all cus­tomers, they said.

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