Each depositor insured to at least $250,000 per insured bank

Home > Industry Analysis > Failed Banks > Failed Bank List > Failed Bank Information > Question and Answer Guide

Question and Answer Guide
First Coweta Bank, Newnan, GA
FDIC Call Center
Toll free number 1-800-405-8028
Hours of Operation – Eastern Time
Friday, August 21, 2009:   Until 9:00 p.m.
Saturday, August 22, 2009:   9:00 a.m. – 6:00 p.m.
Sunday, August 23, 2009:   Noon – 6:00 p.m.
Thereafter:   8:00 a.m. – 8:00 p.m.

On August 21, 2009, the Georgia Department of Banking and Finance closed First Coweta Bank, Newnan, GA. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, United Bank, Zebulon, GA acquired substantially all the deposits and assets from the FDIC as Receiver for First Coweta Bank. Any claims by equity holders were not acquired.

The following answers are provided for the most commonly asked questions by customers of a failed bank. The total balance in your account(s) with First Coweta Bank, Newnan, GA has been transferred to United Bank, Zebulon, GA, and will be available for transactions during regular business hours at the former offices of First Coweta Bank.

You may continue to use your same checks, ATM cards and debit cards until United Bank, Zebulon, GA, notifies you otherwise.

All Direct Deposits, including Social Security checks, will continue as usual.

Account(s): What about my account with First Coweta Bank?

If you had an account with First Coweta Bank, you now have an account with United Bank, Zebulon, GA. All deposit accounts, which include checking, savings, money market, CDs and retirements accounts, have been transferred to United Bank, Zebulon, GA, regardless of the dollar amount. No one lost any money on deposit in First Coweta Bank.

Customers of both banks should continue to use their existing branches until United Bank can fully integrate the deposit records of First Coweta Bank.

To forewarn you of any scams, please be advised that you will not receive any e-mail notifications from the FDIC, the Receiver, or United Bank, Zebulon, GA, asking you to claim/unlock/un-suspend your account or to provide any private information. Please be watchful for and resist any scams to obtain information by you from individuals or entities purporting to act on behalf of First Coweta Bank.

ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with First Coweta Bank?

Your ATM/debit card will continue to work, and bill paying will work as it has in the past.

Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?

As an All-Deposit Transfer transaction, the total of all deposit accounts, excluding the Cede & Co. brokered deposits, have been assumed by United Bank, Zebulon, GA. The FDIC retained the Cede & Co. brokered deposits and will pay those accounts off directly.

Be advised, however, that from and after the date of closing, United Bank, Zebulon, GA, will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, United Bank, Zebulon, GA, shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.

If you are a customer who has a First Coweta Bank deposit through a broker, you must contact your broker with any questions.

Direct Deposits - Government Deposits: What will happen to my direct deposits?

Direct Deposits, including Social Security checks, will continue as normal.

Existing Deposits at United Bank: I already have other deposit accounts with the new bank.  When combined with balances at this bank, my deposits exceed $250,000.  Are all funds insured?

The accounts transferred to United Bank, Zebulon, GA will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

All interest on insured deposits accrued through August 21, 2009, will be paid at your same rate. United Bank, Zebulon, GA will review rates and notify you if interest rates will change.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering a new deposit agreement can be done by either renewing your CD or making a deposit to or a withdrawal from your account.

Loans/mortgages: What about my loan or mortgage with First Coweta Bank?

United Bank, Zebulon, GA assumed most of the loans held by First Coweta Bank. For the loans acquired by United Bank, Zebulon, GA, your payment amounts and due dates are the same. If your payment(s) are deducted from your account, they will continue as in the past. You should continue to make your checks payable to First Coweta Bank and send your payments to the same address.

The FDIC will contact those borrowers whose loans were not passed along to United Bank, Zebulon, GA.

Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer.  All prior contacts remain the same.

Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

LaJuan Williams-Young

Outstanding Checks: What about checks that I have written on my account with First Coweta Bank?

Your checks will clear up to the available balance in your account. You can continue to use your existing checks.

Safe Deposit Boxes: How can I claim the contents of my safe deposit box?

It is business as usual. You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.

Shareholders: What about my shares of stock?

Shareholders have a claim against the receivership; however, they have the lowest priority of claim. You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes. The FDIC does not require stockholders to file a claim with the Receiver. However, we recommend that you keep our office informed of any address change, should we need to contact you in the future.

Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution.  The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction.  The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.

Unpaid Bills: I did some work for the bank and have not been paid. What should I do?

All claims against First Coweta Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:

FDIC as Receiver for First Coweta Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent

Last Updated 08/21/2012 cservicefdicdal@fdic.gov