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

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Question and Answer Guide
Southern Community Bank, Fayetteville, GA

FDIC Call Center
Toll free number 1-800-308-4470
Hours of Operation – Eastern Time
Friday, July 19, 2009:   Until 9:00 p.m.
Saturday, July 20, 2009:   9:00 a.m. – 6:00 p.m.
Sunday, July 2, 2009:   Noon – 6:00 p.m.
Thereafter:   8:00 a.m. – 8:00 p.m.

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

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.

On June 19, 2009, Southern Community Bank was closed by the Georgia Department of Banking and Finance. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, United Community Bank acquired the assets and most of the liabilities of Southern Community Bank from the FDIC as Receiver for Southern Community Bank. Any claims by equity holders were not acquired. Share price does not trigger a bank closing and was not the reason for Southern Community Bank's failure.

Account(s): What about my account with Security Bank of North Metro?

If you had an account with Southern Community Bank, you now have an account with United Community Bank. All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirements accounts, have been transferred to United Community Bank, Blairsville, GA, regardless of the dollar amount. No one lost any money on deposit in Southern Community Bank.

Customers of both banks should continue to use their existing branches until United Community Bank can fully integrate the deposit records of Southern Community Bank. Branches with Saturday hours will open for normal business hours on Saturday, June 20, 2009.

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.

ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Security Bank of North Metro?

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, including brokered deposits, have been assumed by United Community Bank.

Be advised, however, that from and after the date of closing, United Community Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, United Community Bank 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 Southern Community 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 will continue as normal, including Social Security checks.

Existing Deposits at State Bank and Trust Company 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?

The accounts transferred to United Community Bank 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?

United Community Bank will be reviewing rates and will notify you.

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.

Loans/mortgages: What about my loan or mortgage with Security Bank of North Metro?

All mortgages and loans have been assumed by United Community Bank. 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 Southern Community Bank and send your payments to the same address.

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
(202) 898-3876

Outstanding Checks: What about checks that I have written on my account with Security Bank of North Metro?

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?

There was no publicly owned stock in Southern Community Bank. If you are an equity shareholder, your shares are in Southern Community Bancshares, Inc., Fayetteville, GA, the holding company for Southern Community Bank, and not the institution. Southern Community Bancshares, Inc. and the interests of equity, debt holders, or other creditors of Southern Community Bancshares, Inc. are not included in the closure or receivership of the institution. Please do not file a claim with the Receiver. Instead, contact Southern Community Bancshares, Inc. directly for information:

Southern Community Bancshares, Inc
525 North Jeff Davis Drive
P.O. Box 142069
Fayetteville, GA 30214

Any claims by equity holders were not acquired.

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

FDIC as Receiver of Southern Community Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent

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.

Last Updated 08/17/2012 cservicefdicdal@fdic.gov