FEDERAL DEPOSIT INSURANCE CORPORATION
IN RE: New Security First Network Bank
Atlanta, Georgia
Application for Federal Deposit Insurance
(Savings Association Insurance Fund)
ORDER
The Board of Directors ("Board") of the Federal Deposit Insurance Corporation
("FDIC") has fully considered all available facts and information relevant to
the factors of Section 6 of the Federal Deposit Insurance Act and relating to the
application for Federal deposit insurance, with membership in the Savings Association
Insurance Fund, for New Security First Network Bank, a proposed new federal savings bank
to be located at 3390 Peachtree Road, Northeast, Suite 1700, Atlanta, Fulton County,
Georgia, and has concluded that the application should be approved.
Accordingly, it is hereby ORDERED, that the application submitted on behalf of New
Security First Network Bank for Federal deposit insurance be and the same hereby is
approved subject to the following conditions.
1. That beginning paid-in capital funds of not less than $10,000,000 shall be
provided-,
2. That a ratio of "Tier I" capital to "total assets" of not less
than 8 percent, in addition
to a fully funded loan loss reserve, shall be maintained during the first 3 years of
operation;
3. That during the first three years of operations, cash dividends shall be paid only
from
net operating profits and shall not be paid unless an appropriate allowance for loan
and lease losses has been established and overall capital is adequate;
4. That any changes in proposed management or proposed ownership (10 percent or
more of stock), including new acquisitions of 10 percent or more of stock, will render
approval null and void unless such proposal is approved by the appropriate FDIC
Regional Director prior to opening the bank;
5. That the bank shall retain a qualified, full-time managing officer acceptable to the
appropriate FDIC Regional Director;
6. That deposit insurance shall not become effective unless and until the applicant has
been established as a federal savings bank, that it has authority to conduct a banking
business, and that its establishment and operation as a savings bank have been fully
approved by the Office of Thrift Supervision;
7. That, until the date this conditional commitment for deposit insurance becomes
effective, the FDIC shall have the right to alter, suspend, or withdraw the said
commitment should any interim development be deemed to warrant such action; and
8. That, if deposit insurance has not become effective within twelve months from the
date of this Order, or unless, in the meantime, a request for an extension of time has
been approved by the FDIC, the consent granted shall expire at the end of said
twelve-month period.
Dated at Washington, D. C., this 24th day of March, 1998.
BY ORDER OF THE BOARD OF DIRECTORS
Robert E. Feldman
Executive Secretary
FEDERAL DEPOSIT INSURANCE CORPORATION
IN RE: New Security First Network Bank
Atlanta, Georgia
Application for Federal Deposit Insurance
(Savings Association Insurance Fund)
STATEMENT
Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C.
1815), an application for Federal deposit insurance has been filed on behalf of New
Security First Network Bank, a proposed new federal savings bank to be located at 3390
Peachtree Road, Northeast, Suite 1700, Atlanta, Fulton County, Georgia ("New
SFNB").
The proposal is necessary to facilitate a corporate reorganization in which the
existing banking operations of the Security First Network Bank will be transferred to New
SFNB. New SFNB's business plan is to continue to provide traditional deposit and loan
products; however, it will be nontraditional in handling customer transactions. Deposit
transactions will be conducted using primarily direct deposit, automated teller machines,
telephone, mail, and Internet banking capabilities. Initially, credit cards will be the
only loan product offered via the Internet; other types of loans will be offered through
New SFNB's Atlanta office.
Initial capitalization is adequate, and projected deposit growth, if realized, will
result in operating profits within a reasonable period of time. The factors relating to
general character and fitness of management and risk to the deposit insurance fund have
been resolved favorably. A review of the applicant's statements and other available
information revealed no inconsistencies with the purpose of the Community Reinvestment
Act.
Accordingly, based on careful evaluation of all available relevant facts and
information, the Board of Directors ("Board") of the Federal Deposit Insurance
Corporation has concluded that approval of the application is warranted, subject to the
conditions listed in the ORDER. In granting such approval, the Board has taken into
consideration the fact that Security First Network Bank has been conducting electronic
banking activities since 1995. Furthermore, the October 23, 1997, approval by the Office
of Thrift Supervision was subject to numerous conditions which addressed the uniqueness of
this proposed transaction.
THE BOARD OF DIRECTORS
FEDERAL DEPOSIT INSURANCE CORPORATION
