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FDIC Announces Action on Local Bank
Monday, 30 November 2009

November 30--  An area bank is one of three in Georgia to receive "Cease and Desist Orders," according to an announcement released Friday in Washington by the Federal Deposit Insurance Corporation (FDIC).

Montgomery Bank and Trust, headquartered in Ailey, consented to the order in September based on findings of bank examiners last May.  The other Georgia banks are located in Conyers and Roswell.

The examiners identified eleven areas which they called "unsafe and unsound banking practices" from which Montgomery Bank and Trust must cease and desist.

You may read the full text of the order by clicking on the link below. Montgomery Bank & Trust, Ailey, GA; FDIC-09-325b; Issued 10/6/09 - PDF ( PDF Help )

In response to our request, the bank issued the following statement Monday.

  "Ailey, Georgia - Montgomery Bank &. Trust, with its main office in Ailey, Georgia and branches located in Vidalia, St. Simons Island and Kingsland, Georgia, announced that on October 6 it entered into a formal regulatory agreement with the Georgia Department of Banking & Finance and the Federal Deposit Insurance Corporation.

 "The regulatory agreement, officially known as a "cease and desist order," ensures that the Bank is correcting problems identified during its most recent examination and that the Bank's Board of Directors and management team will both put forth a good faith effort to remedy those problems.

 "The cease and desist order is designed to improve the financial condition of the Bank. "We want everyone to understand that an order to "cease and desist" does not mean the Bank will cease to exist," cautions Trae Dorough, Chief Executive Officer of the Bank. "It is a systematic plan that we believe will place us in a better position to perform as economic conditions improve. Our Bank, like other community banks, is a reflection of the community it serves. The communities we serve are having a rough time right now, particularly in residential and commercial real estate. The economic downturn has affected everyone in some way. Many Georgia banks with significant concentrations of non-performing assets are believed to be subject to some form of enforcement action. We have been expecting this order and have been proactive in aggressively working to meet its requirements."

 "The Bank has plans to raise additional capital to meet the terms of the agreement. These plans are in addition to the $2.8 million in capital injected by the Bank's directors and existing shareholders as of September 30, 2009. According to Mr. Dorough, "While we focus on addressing our problems and working through them, we will continue to operate our business as usual. The Montgomery Bank & Trust staff, officers and directors are here to serve our customers' banking needs just as we have since 1926."

 

 

 

 

 
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