The bank, which took over Alabama Trust Bank when it was closed by federal officials, is holding a customer appreciation day this Friday.
It will have burgers from Juicy Burgers, Blue Bell ice cream and door prizes provided by local businesses from 11 a.m. until 2 p.m. at its West Fort Williams Street location.
“We wanted to do something to thank our customers for standing by us and having faith in us during this transition,” said Meredith Nelson, Southern States Bank senior vice president of marketing.
The bank opened May 19 after the Office of Comptroller of the Currency, a branch of the United States Department of the Treasury, closed Alabama Trust Bank and turned it over to the FDIC.
The Anniston-based Southern States Bank entered into an agreement with the FDIC to assume all of Alabama Trust Bank’s deposits. As of March 31, 2012, the bank had approximately $51.5 million in total assets and $45.1 million in total deposits, according to the FDIC. In addition to assuming all of the deposits of the failed bank, Southern States Bank agreed to purchase essentially all of the assets.
Nelson said the transition period is going well, although it is not yet complete.
“It has been great,” Nelson said. “Everybody has welcomed us into the community with open arms. We are continuing to serve the Sylacauga community with the same bankers they know and trust.”
Friday’s event is supported by local merchants that do business with the bank, Nelson said. Along with Juicy Burgers and Blue Bell Creameries, prizes will be provided by the following businesses: Nan’s Flowers and Gifts, Earlyne’s Flowers, Piggly Wiggly, Marble City Grill, Vansandt Hardware, Marble City Pharmacy, Sears, Wright Tire, Royal Tire, Aaron’s and Coca Cola.
Nelson said customer appreciation day is one of many community-oriented events to come from the bank.
“We plan on a lot of community involvement,” she said.
Alabama Trust Bank’s federal takeover was necessary after it experienced a “dissipation of assets and earnings due to unsafe or unsound practices,” according to a press release from the OCC. The OCC also said the bank was likely to incur losses that would deplete its capital.
“The bank is critically undercapitalized, and there is no reasonable prospect that the bank will become adequately capitalized without federal assistance,” the OCC stated.
Compared to other alternatives, Southern States Bank's acquisition was the least costly resolution for the FDIC's Deposit Insurance Fund at an estimated $8.9 million, the FDIC stated.
Alabama Trust Bank was the 24th FDIC-insured institution to fail in the nation this year and the first in Alabama. The last FDIC-insured institution closed in the state was Superior Bank in Birmingham in April 2011.
Contact Emily Adams at eadams@dailyhome.com.
