May 13 - Sunrise Bank, Valdosta, Closed; Synovus Bank Assumes $57.8 Million in Deposits and Assets

Category: Banking & Finance

May 13, 2013 - Sunrise Bank of Valdosta was closed Friday by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Synovus Bank, headquartered in Columbus, to assume all of the deposits of Sunrise Bank. In the Savannah area, Synovus uses the Sea Island Bank brand.

The three former branches of Sunrise Bank will reopen as branches of Synovus Bank during their normal business hours. Depositors of Sunrise Bank will automatically become depositors of Synovus Bank.

As of March 31, 2013, Sunrise Bank had approximately $60.8 million in total assets and $57.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, Synovus Bank agreed to purchase approximately $13.2 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that cost to the Deposit Insurance Fund will be $17.3 million. Compared to other alternatives, Synovus Bank was the least costly resolution for the FDIC's DIF fund, according to the FDIC.   Sunrise Bank is the 12th FDIC-insured institution to fail in the nation this year, and the third in Georgia. The last FDIC-insured institution closed in the state was Douglas County Bank, Douglasville, on April 26, 2013.