PRESS RELEASES
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SONABANK, MCLEAN VIRGINIA, ASSUMES ALL OF THE DEPOSITS OF GREATER ATLANTIC
BANK, RESTON, VIRGINIA
FOR IMMEDIATE RELEASE MEDIA CONTACT:
DECEMBER 4, 2009 DAVID BARR (202) 898-6992
CELL: (703) 622-4790
EMAIL: dbarr@fdic.gov
Greater Atlantic Bank, Reston, Virginia, was closed today by the Office of
Thrift Supervision, which appointed the Federal Deposit Insurance
Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered
into a purchase and assumption agreement with Sonabank, McLean, Virginia,
to assume all of the deposits of Greater Atlantic Bank.
The five branches of Greater Atlantic Bank will reopen during normal
business hours as branches of Sonabank. Depositors of Greater Atlantic Bank
will automatically become depositors of Sonabank. Deposits will continue to
be insured by the FDIC, so there is no need for customers to change their
banking relationship to retain their deposit insurance coverage. Customers
should continue to use their existing branch until they receive notice from
Sonabank that it has completed systems changes to allow other Sonabank
branches to process their accounts as well.
This evening and over the weekend, depositors of Greater Atlantic Bank can
access their money by writing checks or using ATM or debit cards. Checks
drawn on the bank will continue to be processed. Loan customers should
continue to make their payments as usual.
As of October 20, 2009, Greater Atlantic Bank had total assets of
approximately $203.0 million and total deposits of approximately $179.0
million. Sonabank did not pay the FDIC a premium for the deposits of
Greater Atlantic Bank. In addition to assuming all of the deposits of the
Greater Atlantic Bank, Sonabank agreed to purchase essentially all of the
assets.
The FDIC and Sonabank entered into a loss-share transaction on
approximately $145.0 million of Greater Atlantic Bank's assets. Sonabank
will share in the losses on the asset pools covered under the loss-share
agreement. The loss-share transaction is projected to maximize returns on
the assets covered by keeping them in the private sector. The transaction
also is expected to minimize disruptions for loan customers. For more
information on loss share, please visit:
http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about today's transaction can call the FDIC
toll-free at 1-800-830-6698. The phone number will be operational this
evening until 9:00 p.m., Eastern Standard Time (EST); on Saturday from 9:00
a.m. to 6:00 p.m., EST; on Sunday from noon to 6:00 p.m., EST; and
thereafter from 8:00 a.m. to 8:00 p.m., EST. Interested parties also can
visit the FDIC's Web site at
http://www.fdic.gov/bank/individual/failed/atlantic-va.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will
be $35 million. Sonabank's acquisition of all the deposits was the "least
costly" resolution for the FDIC's DIF compared to alternatives. Greater
Atlantic Bank is the 130th FDIC-insured institution to fail in the nation
this year, and the first in Virginia. The last FDIC-insured institution
closed in the state was New Atlantic Bank, National Association, Norfolk,
on August 12, 1993.
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to
restore public confidence in the nation's banking system. The FDIC insures
deposits at the nation's 8,099 banks and savings associations and it
promotes the safety and soundness of these institutions by identifying,
monitoring and addressing risks to which they are exposed. The FDIC
receives no federal tax dollars - insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at
www.fdic.gov, by subscription electronically (go to
www.fdic.gov/about/subscriptions/index.html) and may also be obtained through
the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-224-2009