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Federal Deposit
Insurance Corporation

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

Question and Answer Guide

Security Bank of Gwinnett County, Suwanee, GA

FDIC Call Center
Toll free number 1-800-822-1918
Hours of Operation – Eastern Time
Friday, July 24, 2009: Until 9:00 p.m.
Saturday, July 25, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, July 26, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.

On July 24, 2009, Security Bank of Gwinnett County, Suwanee, GA, was closed by the Georgia Department of Banking and Finance. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, State Bank and Trust Company, Pinehurst, GA acquired all of the deposits and most of the assets of Security Bank of Gwinnett County from the FDIC as Receiver for Security Bank of Gwinnett County. Any claims by equity holders were not acquired. Share price does not trigger a bank closing and was not the reason for Security Bank of Gwinnett County's failure.

The total balance in your account(s) has been transferred to State Bank and Trust Company and will be available for transactions during regular business hours at the former Security Bank of Gwinnett County.

You may continue to use your same checks, ATM cards and debit cards until notified.

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

Deposit Questions

  1. Account(s): What about my account with Security Bank of Gwinnett County?
  2. ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Security Bank of Gwinnett County?
  3. Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?
  4. Direct Deposits - Government Deposits: What will happen to my direct deposits?
  5. Existing Deposits at State Bank and Trust Company: 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?
  6. Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?

Loan Questions

  1. Loans/mortgages: What about my loan or mortgage with Security Bank of Gwinnett County?
  2. Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

General Questions

  1. Media: I represent a TV/Newspaper/Radio and would like some information.
  2. Outstanding Checks: What about checks that I have written on my account with Security Bank of Gwinnett County?
  3. Safe Deposit Boxes: How can I claim the contents of my safe deposit box?
  4. Shareholders: What about my shares of stock?
  5. Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?
  6. Unpaid Bills: I did some work for the bank and have not been paid. What should I do?


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DEPOSIT QUESTIONS

1. What about my account with Security Bank of Gwinnett County?

If you had an account with Security Bank of Gwinnett County, you now have an account with State Bank and Trust Company, Pinehurst, GA. All deposit accounts, which include checking, savings, money market, CDs and retirement accounts, have been transferred to State Bank and Trust Company, regardless of the dollar amount. No one lost any money on deposit in Security Bank of Gwinnett County.

Customers of both banks should continue to use their existing branches until State Bank and Trust Company can fully integrate the deposit records of Security Bank of Gwinnett County.

Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.


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2. What about my ATM/debit card and/or bill paying with Security Bank of Gwinnett County?

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


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3. 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, including brokered deposits have been assumed by State Bank and Trust Company, Pinehurst, GA.

Be advised, however, that from and after the date of closing, State Bank and Trust Company will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, State Bank and Trust Company 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 Security Bank of Gwinnett County deposit through a broker, you must contact your broker with any questions.


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4. What will happen to my direct deposits?

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


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5. 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 State Bank and Trust Company 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.


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6. 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 July 24, will be paid at your same rate. State Bank and Trust Company 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 into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.


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LOAN QUESTIONS

7. What about my loan or mortgage with Security Bank of Gwinnett County?

All mortgages and loans have been assumed by State Bank and Trust Company. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to Security Bank of Gwinnett County and send your payments to the same address.


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8. 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.


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GENERAL QUESTIONS

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

Please contact the Office of Public Affairs:

David Barr
202-898-6992
dbarr@fdic.gov


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10. What about checks that I have written on my account with Security Bank of Gwinnett County?

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


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11. 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.


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12. What about my shares of stock?

There was no publicly owned stock in Security Bank of Gwinnett County. If you are an equity shareholder, your shares are in Security Bank Corporation, Macon, GA, the holding company for Security Bank of Gwinnett County, and not the institution. Any claims by equity holders were not acquired. The holding company and the interests of equity, debt holders or other creditors of the holding company are not included in the closure or receivership of the institution. Please do not file a claim with the Receiver, rather contact the holding company directly for information as follows:

Security Bank Corporation
P.O. Box 4748
Macon, GA 31208-4748


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13. 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.


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

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

FDIC as Receiver for Security Bank of Gwinnett County
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent


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SCAMS: Be watchful for and resistant to any scams to obtain information from you by individuals or entities stating that they are acting on behalf of either the failed bank, new bank, or the FDIC. Should you be contacted by anyone requesting personal information from you related to this event, please contact the call center above and you will be directed to the appropriate person.


For more information: www.fdic.gov/bank/individual/failed/sb-gwinnett.html


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