Bryan Bank and Trust, a subsidiary of The Savannah Bancorp Inc., has entered into a consent order with the Federal Deposit Insurance Corporation and the Georgia Department of Banking and Finance.
Bryan Bank entered into the consent order on March 1 in an effort to strengthen its financial position, according to a release from the bank.
The release said “like many other banks throughout Georgia and across the country, Bryan Bank has experienced an increase in nonperforming loans and classified assets during the economic downturn,” which has impacted earnings.
Bryan Bank and Trust CEO and President Dell Keith said in the release that despite obstacles like declines in real estate values and high unemployment, the bank is proactive.
“The bank…has remained proactive in making the necessary adjustments to sturdy its position in the best interest of its customers, shareholder, employees and the community as a whole,” Keith said.
“We have been working diligently over the last two years to maintain and adequately capitalized position and to reduce our level of problem loans,” Keith also stated. “We have taken the necessary steps to revamp our credit policies to reduce our exposure and address our future credit risk to help meet regulatory requirements.
“By signing the order, our board of directors and management team are committed to working closely with the regulatory agencies to continue to resolve the issues facing the bank and meet all the terms and conditions of the order.
The release said the consent order does not affect the bank’s ability to continue business as normal.
Banking products and services, business hours, internet banking, ATM usage and FDIC deposit insurance coverage will not be changed. Customer deposits remain protected and insured by the FDIC up to $250,000 per depositor—the maximum allowed by law.
“Though the order is new, we have basically operated under the same guidelines and goals outlined in the order for over two years,” Keith said in the release. “As a result of this difficult economic environment, it is not uncommon for banks to operate under such a regulatory order.”
Bryan Bank, which has served the community for more than 20 years, has maintained more than 60 percent of the market share in Bryan County, Keith also stated.
Chairman of the Board of Directors Jimmy Burnsed said Bryan Bank has seen its share of challenges like many other banks.
“We…are fortunate to have so many businesses and consumers in our community stand by us and support us in this critical time, just as we have supported them over the years,” Burnsed said. “We are still in the business of making loans to qualified borrowers.
“Bryan’s roots are here in Bryan County, where we plan to stay and to keep getting stronger, better and wiser with every day that passes. Our management team remains confident in our ability to overcome this challenge and looks forward to emerging as an even stronger bank.
“We will not divert our attention from providing our customers with the same level of superior service that they have come to expect from the bank.”