BIRMINGHAM, Ala., April 15, 2011 /PRNewswire/ -- AloStar Bank of Commerce has entered into a purchase and assumption agreement with loss share arrangements with the Federal Deposit Insurance Corporation (FDIC) to purchase substantially all of the assets, assume certain liabilities and all of the deposits of Nexity Bank in Birmingham, Ala.
The loss share transaction is projected to maximize returns on the covered assets by keeping them in the private sector and minimizing disruptions for loan customers. Nexity Bank has offices in Atlanta, Birmingham and Myrtle Beach, S.C.
After the close of business at 5 p.m. on Friday, April 15, the Alabama State Banking Department declared Nexity Bank insolvent and the FDIC accepted receivership. The bank's three locations will reopen on Monday, April 18 as AloStar Bank of Commerce, with normal banking hours. The bank's call center will be open on Friday from 5 p.m. to 10 p.m. and Saturday from 9 a.m. to 6 p.m. EDT. The number is 877-738-6391.
Former Nexity Bank customers will be able to conduct business as usual. They can continue to access their funds by writing Nexity Bank checks until they receive AloStar Bank of Commerce checks. They can also continue to use ATM or debit cards and online banking. Checks drawn on the bank will continue to be accepted. Loan customers should continue to make their payments as usual.
Finance executives Michael Gillfillan and Andrew McGhee established AloStar for the purpose of acquiring the assets and assuming the deposits of Nexity Bank. Gillfillan and McGhee have 66 years of combined experience in banking, finance and private equity.
"We are very pleased to welcome Nexity Bank customers to AloStar," said Gillfillan, who will serve as chairman and CEO. "We are excited to help small- to medium-size companies, community banks and individuals in ways that bring value to each of them and the overall economy. Our model is straightforward and specifically customer-focused."
"We will continue to build on the national deposit base established by Nexity," Gillfillan continued. "We will provide unmatched products and service to businesses in need of capital and will share opportunities with community banking partners across the country."
McGhee, who will serve as AloStar's executive vice president and president of its commercial division, said there is tremendous opportunity in the commercial lending and business lending market.
"We will hire the best talent and provide a high level of service and sophistication designed especially for companies with $5 million to $150 million in revenues," McGhee said. "These small and medium-sized businesses are the bedrock of the American economy. Many of them have weathered the worst of the recession but still need access to capital. We have the resources, capabilities and strong desire to serve them extremely well."
As a banker's bank, Nexity also provided a variety of services for community banks around the country. There will be no changes to these existing services, and Gillfillan expects significant new products and opportunities for AloStar's community bank partners in the future.
Gillfillan spent 26 years at Wells Fargo, where he finished his career as chief credit officer and vice chairman. He has extensive experience in bank governance and commercial finance and management.
McGhee co-founded Archway Equity Partners, an Atlanta-based private equity firm, in 2008. Prior to that, he spent 12 years with SunTrust, where he served as managing director of three business units and eventually attained a title of senior vice president. McGhee has also held leadership positions at Citicorp, Bank South, and Bank of America Business Credit.
Nexity Bank deposit customers will receive a letter providing additional details concerning their accounts, and are encouraged to visit www.alostarbank.com or call 877-738-6391 for additional information.
Customers who have questions about today's transaction can also call the FDIC toll-free at 877-367-2718. This number will be in operation Friday until 9 p.m., CDT; Saturday from 9 a.m. to 6 p.m., CDT; and Sunday from noon to 6 p.m., CDT and thereafter from 8 a.m. to 8 p.m., CDT.
About AloStar Bank of Commerce
AloStar Bank of Commerce provides value for depositors, small to medium-sized companies and community banks across the country through outstanding customer service and unique lending products and services.
AloStar is committed to serving the community banking market place through unrivaled client service and cutting edge products. For more information, visit www.alostarbank.com.
SOURCE AloStar Bank of Commerce