I. Introduction
On March 26, 2010, McIntosh Commercial Bank, a Carrollton, Georgia-based financial institution, was shut down by the Georgia Department of Banking and Finance. The Federal Deposit Insurance Corporation (FDIC) was appointed as the Receiver, tasked with managing the bank’s assets and liabilities. This action was a measure taken to protect depositors and the financial system. It’s crucial to note that legitimate communications from the FDIC or any financial institution will never request sensitive personal information via unsolicited emails. Always be vigilant against phishing scams that attempt to steal your data by impersonating banks or regulatory bodies.
II. Press Release Information
Following the closure of McIntosh Commercial Bank in Carrollton, GA, the FDIC issued a public press release (PR-066-2010) detailing the event. For media inquiries regarding this event, LaJuan Williams-Young was the designated contact person at the FDIC, reachable at 1-202-898-3876. This press release served as the official announcement and provided initial details to the public and media outlets about the bank failure.
III. Acquisition by CharterBank
To ensure minimal disruption to depositors, all deposit accounts of McIntosh Commercial Bank, with the exception of certain brokered deposits, were seamlessly transferred to CharterBank, headquartered in West Point, GA. The former McIntosh Commercial Bank locations in Carrollton reopened as branches of CharterBank, maintaining continuous service for customers. Depositors of the former Carrollton bank could immediately access their funds. Importantly, deposits transferred to CharterBank were separately insured by the FDIC for a period of six months from the date of McIntosh Commercial Bank’s failure. This separate insurance coverage was in addition to any existing accounts depositors might already hold at CharterBank, providing added security during the transition. Checks drawn on McIntosh Commercial Bank before its closure were honored, provided sufficient funds were available in the account. For any queries related to accounts transferred to CharterBank, individuals were advised to contact an FDIC representative at 1-800-450-5668. For general questions about FDIC deposit insurance, the FDIC provided a toll-free number, 1-877-275-3342, and recommended using EDIE, the Electronic Deposit Insurance Estimator available on the FDIC website (EDIE – FDIC’s Electronic Deposit Insurance Estimator). Furthermore, depositors could withdraw funds from their transferred accounts without incurring early withdrawal penalties until they established a new deposit agreement with CharterBank, unless the deposits were pledged as loan collateral. More information about CharterBank was available on their website (CharterBank).
IV. Order of Claim Priority
In the event of a bank failure like that of McIntosh Commercial Bank in Carrollton, federal law dictates a specific order for claim payments. After covering administrative expenses associated with the receivership, the priority of claims is as follows:
- Depositors: Depositors are given the highest priority, reflecting the importance of protecting individual and business deposits.
- General Unsecured Creditors: These are entities or individuals owed money by the bank without specific collateral pledged against the debt.
- Subordinated Debt Holders: These creditors hold debt that ranks below general unsecured creditors in terms of repayment priority.
- Stockholders: Stockholders are last in line, meaning they are paid only after all other creditor classes have been fully compensated.
This priority structure ensures that depositors are first in line to recover their funds, followed by other creditors and finally, stockholders.
V. Dividend Distribution Information
Information regarding dividend payouts related to McIntosh Commercial Bank can be found on the FDIC’s dedicated page for Dividend History on McIntosh Commercial Bank. For broader information on dividend distributions from failed financial institutions, the FDIC provides a comprehensive resource at Dividend Information on Failed Financial Institutions. These resources provide transparency and detail regarding the process of returning funds to creditors of failed banks like the Carrollton bank.
VI. Receivership Termination
The FDIC, acting as Receiver for McIntosh Commercial Bank, Carrollton, GA, officially concluded the receivership process. A public notice of the FDIC’s intent to terminate the receivership was published in the Federal Register on January 11, 2016. Having completed all legally required dividend distributions to creditors, the receivership for McIntosh Commercial Bank was formally terminated on July 1, 2016. At this point, the FDIC was discharged from its role as Receiver, and the McIntosh Commercial Bank Receivership Estate ceased to exist as a legal entity. This marked the final step in resolving the affairs of the failed Carrollton bank.
