Cherokee Bank's Parent Enters into Agreement With Regulator
CANTON, Ga., May 13 /PRNewswire-FirstCall/ --Cherokee Banking Company (OTC Bulletin Board: CHKJ), the holding company of Cherokee Bank, N.A., today announced that the company has signed an agreement with the Federal Reserve Bank to be a source of strength for the bank. In addition, the company, without the approval of the Federal Reserve Bank, will not declare dividends nor make distributions, will not increase debt nor redeem stock, and will not appoint any new director or make senior management changes. The agreement may be viewed in its entirety at www.CherokeeBank.net.
"We are in concurrence with the Federal Reserve and what's most significant in this agreement is what it does not say," said Dennis Burnette, president and chief executive officer. "There is nothing new here for Cherokee Bank. This agreement references that, over a year ago, Cherokee Bank signed a Consent Order with the Office of the Comptroller of the Currency that addressed the Bank's critical issues. Our strategic plan process is aimed at ensuring that we remain a safe and sound institution."
Burnette said further, "Despite a terrible economy, we have successfully upheld our capital ratio, as well as maintained an adequate level of liquidity, and implemented a program with an objective of reducing our problem assets."
The agreement has no impact on deposit and retirement accounts, which continue to be insured for a minimum of $250,000 per depositor by the FDIC through December 2013. Additionally, business checking accounts are insured without limit due to Cherokee Bank's participation in the FDIC's Transaction Account Guarantee Program.
"As we complete the processes outlined in the agreement, we will continue to operate as normal, providing friendly, personalized service to our clients," said Burnette.
About Cherokee Banking Company
Cherokee Banking Company, based in Canton, Ga., is the holding company for Cherokee Bank, a full-service commercial bank providing a broad range of consumer and business banking services through offices in Canton and Woodstock, Ga. The bank focuses on meeting the needs of individuals and small to medium-sized businesses in Cherokee County and adjacent areas of northern metro Atlanta. The company's stock trades on the OTC bulletin board under the symbol CHKJ.OB.
SOURCE Cherokee Banking Company
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