Each depositor insured to at least $250,000 per insured bank



Home > Regulation & Examinations > Laws & Regulations > Decisions on Bank Applications





Decisions on Bank Applications

Skip Left Navigation Links
0
Decisions on Bank Apps Home
Investments & Activities

   •  Equity Securities
   •  Real Estate
   •  Insurance
   •  Miscellaneous
Deposit Insurance
Merger Transactions
Mutual to Stock Conversions
Part 347
Other Applications
New Security First Network Bank

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: New Security First Network Bank Atlanta, Georgia

Application for Federal Deposit Insurance (Savings Association Insurance Fund)

ORDER

The Board of Directors ("Board") of the Federal Deposit Insurance Corporation ("FDIC") has fully considered all available facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act and relating to the application for Federal deposit insurance, with membership in the Savings Association Insurance Fund, for New Security First Network Bank, a proposed new federal savings bank to be located at 3390 Peachtree Road, Northeast, Suite 1700, Atlanta, Fulton County, Georgia, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, that the application submitted on behalf of New Security First Network Bank for Federal deposit insurance be and the same hereby is approved subject to the following conditions.

1. That beginning paid-in capital funds of not less than $10,000,000 shall be provided-,

2. That a ratio of "Tier I" capital to "total assets" of not less than 8 percent, in addition to a fully funded loan loss reserve, shall be maintained during the first 3 years of operation;

3. That during the first three years of operations, cash dividends shall be paid only from net operating profits and shall not be paid unless an appropriate allowance for loan and lease losses has been established and overall capital is adequate;

4. That any changes in proposed management or proposed ownership (10 percent or more of stock), including new acquisitions of 10 percent or more of stock, will render approval null and void unless such proposal is approved by the appropriate FDIC Regional Director prior to opening the bank;

5. That the bank shall retain a qualified, full-time managing officer acceptable to the appropriate FDIC Regional Director;

6. That deposit insurance shall not become effective unless and until the applicant has been established as a federal savings bank, that it has authority to conduct a banking business, and that its establishment and operation as a savings bank have been fully approved by the Office of Thrift Supervision;

7. That, until the date this conditional commitment for deposit insurance becomes effective, the FDIC shall have the right to alter, suspend, or withdraw the said commitment should any interim development be deemed to warrant such action; and

8. That, if deposit insurance has not become effective within twelve months from the date of this Order, or unless, in the meantime, a request for an extension of time has been approved by the FDIC, the consent granted shall expire at the end of said twelve-month period.

Dated at Washington, D. C., this 24th day of March, 1998.

BY ORDER OF THE BOARD OF DIRECTORS

Robert E. Feldman

Executive Secretary


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: New Security First Network Bank Atlanta, Georgia

Application for Federal Deposit Insurance (Savings Association Insurance Fund)

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for Federal deposit insurance has been filed on behalf of New Security First Network Bank, a proposed new federal savings bank to be located at 3390 Peachtree Road, Northeast, Suite 1700, Atlanta, Fulton County, Georgia ("New SFNB").

The proposal is necessary to facilitate a corporate reorganization in which the existing banking operations of the Security First Network Bank will be transferred to New SFNB. New SFNB's business plan is to continue to provide traditional deposit and loan products; however, it will be nontraditional in handling customer transactions. Deposit transactions will be conducted using primarily direct deposit, automated teller machines, telephone, mail, and Internet banking capabilities. Initially, credit cards will be the only loan product offered via the Internet; other types of loans will be offered through New SFNB's Atlanta office.

Initial capitalization is adequate, and projected deposit growth, if realized, will result in operating profits within a reasonable period of time. The factors relating to general character and fitness of management and risk to the deposit insurance fund have been resolved favorably. A review of the applicant's statements and other available information revealed no inconsistencies with the purpose of the Community Reinvestment Act.

Accordingly, based on careful evaluation of all available relevant facts and information, the Board of Directors ("Board") of the Federal Deposit Insurance Corporation has concluded that approval of the application is warranted, subject to the conditions listed in the ORDER. In granting such approval, the Board has taken into consideration the fact that Security First Network Bank has been conducting electronic banking activities since 1995. Furthermore, the October 23, 1997, approval by the Office of Thrift Supervision was subject to numerous conditions which addressed the uniqueness of this proposed transaction.

THE BOARD OF DIRECTORS
FEDERAL DEPOSIT INSURANCE CORPORATION



Last Updated 03/24/2011 Legal@fdic.gov