United Community Bank, Blairsville, Georgia Assumes All of the Deposits of Southern Community Bank, Fayetteville, Georgia

Southern Community Bank, Fayetteville, Georgia was closed June 19 by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with United Community Bank, Blairsville, Georgia, to assume all of the deposits of Southern Community Bank.

The five offices of Southern Community Bank will reopen for normal business hours, starting Saturday, as branches of United Community Bank. Depositors of Southern Community Bank will automatically become depositors of United Community Bank. 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 of both banks should continue to use their existing branches until United Community Bank can fully integrate the deposit records of Southern Community Bank. Depositors of Southern Community 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 May 29, 2009, Southern Community Bank had total assets of $377 million and total deposits of approximately $307 million. United Community Bank paid a premium of 1 percent to acquire all of the deposits of the failed bank. In addition to assuming all of the deposits of the failed bank, United Community Bank agreed to purchase approximately $364 million of assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and United Community Bank entered into a loss-share transaction on approximately $253 million of Southern Community Bank's assets. United Community Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

Customers who have questions about the June 19 transaction can call the FDIC toll-free at 1-866-308-4470. The phone number will be operational on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/scb.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $114 million. United Community Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Southern Community Bank is the 38th FDIC-insured institution to fail in the nation this year, and the seventh in Georgia. The last FDIC-insured institution to be closed in the state was Silverton Bank, National Association, Atlanta, on May 1, 2009.

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World's Top Chevrolet Dealership Closing

GFP Note: After almost 90 years of business, the Columbus based company is shutting its doors. Whether it is a result of gasoline prices, truck sale slumps, the lawsuits the company was involved in, or a combination of the above, it is still a big shock in Heard land.

By Truman Lewis
ConsumerAffairs.com

The credit crisis and record high gas prices have teamed up to drive the world's largest Chevrolet dealer out of business. Bill Heard Enterprises is closing all 13 of its stores today, the company told its local managers yesterday.....

Read the story.

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Simmons Consolidates Atlanta Manufacturing Operations into Existing Facilities

BUSINESS WIRE --Simmons Bedding Company announced today that it is transitioning its Atlanta manufacturing operations to the company’s facilities in Dallas, Texas; Waycross, Ga. and Charlotte, N.C. with an anticipated effective date of September 18. The move is part of an ongoing effort to optimize Simmons’ operations network in the southeastern United States and will create a more efficient production and delivery system without disrupting service to retailers in the region.

“The decision to close our Atlanta manufacturing facility is a very difficult one for us because of its impact on loyal Simmons associates,” said Simmons Chairman and CEO Charlie Eitel. “Until recently, we believed our Atlanta facility would continue to be part of our manufacturing network; however, due to weaker than expected business conditions, we simply could not justify maintaining two manufacturing plants in the state of Georgia.”

In 2004, Simmons opened a new, state-of-the-art manufacturing facility in Waycross, Ga., which has emerged as one of the top manufacturing plants in the Simmons network. Employing 211 associates, the facility offers excellent safety, quality and service, as well as lower manufacturing costs.

This past April, Simmons reduced its Atlanta production to one shift and moved a portion of business to what is also a new, state-of-the-art manufacturing facility in Dallas. The balance of Atlanta’s production will shift to the Waycross and Charlotte plants on September 18.

According to Kimberly Samon, Simmons’ executive vice president of human resources, the company decided to consolidate its southeast manufacturing operations because of reduced utilization. “Due to the current economic situation, our southeastern facilities have not been operating at full capacity,” said Samon. “Consolidating our manufacturing operations resolves that issue; however, we regret that it will negatively impact our Atlanta associates. We have no further plans to close other facilities.”

The Waycross, Dallas and Charlotte plants are three of Simmons’ leading manufacturing facilities: the Waycross plant has been nominated for the Georgia Manufacturer of the Year award each of the past two years and features a new 250,000 square foot building that showcases lean manufacturing; in April 2008, the Dallas plant moved its operations into a brand new facility that includes environmentally-friendly aspects like energy-efficient lighting and high-efficiency air compressors; and the Charlotte plant’s achievements include being selected for OSHA’s Safety and Health Achievement Recognition Program (SHARP) by the North Carolina Department of Labor’s Occupational Safety & Health Division and receiving the 2003 Tony Saliture Award for Operational Excellence, Simmons’ highest honor.

The closure of the Atlanta facility will result in the layoffs of 91 associates and 12 administrative and management team members, whom Simmons is helping to transition through this difficult time. Nonunion employees will receive severance packages scaled according to tenure, subsidized health insurance for the length of the severance period, outplacement assistance and access to Simmons’ Employee Assistance Program, which includes job, financial and personal counseling. Union employees will receive a severance package that is subject to bargaining with their union.

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