Park Avenue Bank Closes

By: Dontaye Carter; AP Email
By: Dontaye Carter; AP Email

[UPDATE] 4-30 6:30 PM

The Georgia Department of Banking and Finance closed the Park Avenue Bank Friday.

Back in December 2010, the bank was given until March of this year to raise more investor cash or to sell itself.

The Federal Deposit Insurance Corporation was named the receiver Friday and sold the institution to the Bank of the Ozarks.

The F-D-I-C says money held in the bank is safe.

"The important thing for customers to know is nobody lost any money on deposit. The other important thing is customers can continue to use the same checks, atm cards, debit cards, all direct deposits will stay the same," says FDIC Spokesperson Roberta Valdez.

The F-D-I-C says it's policy for banks is to not tell customers if a bank is failing.

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5 banks fail in Fla., Ga., Mich.; makes 39 in '11

WASHINGTON (AP) -- Regulators have shut down a total of five
banks in Florida, Georgia and Michigan, lifting the number of U.S.
bank failures this year to 39. That follows 157 bank closures in
2010 in a limping economy and mounting soured loans.

The Federal Deposit Insurance Corp. on Friday seized the banks:
First National Bank of Central Florida, based in Winter Park, Fla.,
with $352 million in assets; Cortez Community Bank of Brooksville,
Fla., with $70.9 million in assets; First Choice Community Bank of
Dallas, Ga., with $308.5 million in assets; Park Avenue Bank, based
in Valdosta, Ga., with $953.3 million in assets; and Community
Central Bank in Mount Clemens, Mich., with $476.3 million in
assets.

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[UPDATE] 9:26pm

On Friday, April 29, 2011, The Park Avenue Bank, Valdosta, GA was closed by the Georgia Department of Banking and Finance. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

All deposit accounts, excluding the Cede & Co. deposits, have been transferred to Bank of the Ozarks, Little Rock, AR. For more information on Bank of the Ozarks, visit us at www.bankozarks.com.

The FDIC has assembled useful information regarding your relationship with The Park Avenue Bank. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.

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For nearly seven years, Park Avenue Bank is the place Joesph Williams let safeguard his finances.

But with the bank facing it's recent troubles, Williams is starting to worry.

"I feel real bad about it because I didn't know the bank was in trouble," said Williams.

On November 30th, the Federal Reserve's board of governors ordered the bank to raise investor cash or sell itself under the Prompt Corrective Action.

The bank's president, Jay Torbert said in a statement, "We acknowledge our problems, and we have submitted a capital plan to our regulators addressing our efforts to correct these problems. Our plan involves raising additional capital and disposing of the problem assets on our balance sheet. It is important to note that our regulators have accepted this plan, and by issuing this PCA they are providing us with the necessary time to complete our plan."

Tolbert says when the real estate market tanked, many banks felt the impact but the big ones got bailouts and the small ones were left to fend for themselves.

And many residents say it's just a hump the bank needs to get over.

"I hate to hear this is going to happen or not. I hope it don't happen. I believe they'll come over it," said Clinnis Washington.

That is something the Federal Reserve is giving Park Avenue Bank and others like it, 90 days to figure out.

Park Avenue has branches across Georgia and Florida. It has more than one billion dollars in assets and 895 million in deposits.


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