The Brand Banking Co. Formalizes Written Agreement with Regulators

LAWRENCEVILLE, Ga., Aug. 12 /PRNewswire/ -- Brand Group Holdings Inc. and its subsidiary, The Brand Banking Co., have reached a written agreement with the Federal Reserve Bank of Atlanta and the Georgia Department of Banking and Finance that provides a foundation for the continued financial soundness of the 105-year-old Lawrenceville community bank.

"This agreement formalizes actions that our bank has taken over the past year to ensure that we will continue to serve this community for a long time to come," said Brand Bank CEO Bartow Morgan Jr. "We maintain a strong working relationship with our regulators, and this agreement puts into writing items we believe will help Brand Bank further strengthen its balance sheet."

Brand Bank has focused its lending activity to Gwinnett County and Metro Atlanta and kept a careful pulse on the area's market conditions. "As the housing market continued to deteriorate over the past year, we worked closely with our builder and developer customers to help them through their problems," Morgan said.

Brand Bank is one of the few community banks in Georgia reporting a profit this quarter.  The bank posted net profit of $4.3 million in the second quarter ended June 30, 2010, compared with $1.88 million in the second quarter of 2009. Total assets were $1.2 billion, while total deposits were $1.06 billion. The provision for loan losses in the quarter was about $2.3 million, up slightly from $2.1 million in the second quarter of 2009. Net charge-offs were $1.8 million, up from $1.2 million in 2009.

Under the agreement with regulators, Brand Bank is addressing specific areas identified in a September 2009 bank examination.  Since the exam, the bank's board of directors and senior management initiated a series of programs designed to address the items in the agreement. Brand Bank expects to fully comply with all provisions of the agreement within the timelines requested.

Brand Bank remains committed to its mission of serving its customers, many of whom have banked for generations with the bank. "Our customers are at the heart of our bank. It is our obligation to provide them not only a place to make deposits and borrow money, but to help them weather this economic storm," Morgan said. "This agreement with our regulators will have little direct impact on our customers."

"Brand Bank remains a well-run and healthy institution. We look forward to working with our regulators to maintain a strong bank as the economy recovers," Morgan said.

About The Brand Group Holdings Inc. and The Brand Banking Co.

Brand Group Holdings Inc. is the $1.2 billion bank holding company for Brand Banking Company, a full service bank serving the needs of individuals and businesses in Gwinnett County and North Metro Atlanta.

The Brand Bank was chartered in 1905, and is the oldest locally owned bank in Gwinnett, combining old-fashioned personal service with the benefits of modern technology. The Brand Banking Co. is led today by founder E.M. Brand's great-grandson, Bartow Morgan Jr. The bank operates branches in Lawrenceville, Grayson, Snellville, Flowery Branch, Buford and Duluth.

SOURCE The Brand Banking Co.