The holding company for Georgia Bank & Trust and Southern Bank & Trust withdrew its application for federal bank funds through the U.S. Treasury’s Capital Purchase Program.
Augusta-based Southeastern Bank Financial Corp. instead raised $12 million in capital through a private placement, said its president R. Daniel Blanton.
“Although we are well-capitalized and have adequate loan loss reserves, we wanted to raise additional capital as a prudent hedge against a prolonged recession,” Mr. Blanton said.
The company sold approximately $9 million in stock to directors, officers and other accredited investors over the past three weeks. Another $3 million was raised through a debenture, a certificate of agreement of loan.
Mr. Blanton said there was relief among investors when they found out the financial corporation withdrew its federal funding application.
The reason for withdrawing was concern over what was happening with other banks that accepted Troubled Asset Relief Program funds.
“They might convert preferred stock to common stock. It just scared me. If we had accepted that, that would have given (the government) 15 to 18 percent ownership in the company,” Mr. Blanton explained. “We made the best decision for our company based on the information available.”
The Augusta Chronicle ©2010 Morris Communications, LLC. All Rights Reserved.
That's my wonderful Bank. Thanks Mr. Blanton and all of the people who made this intelligent decision.
Praise The Lord for you!
Way to show everyone you can still stand alone.
The bravest smartest decision that could have been made! If the other banks that have accepted TARP money had known Obama had ulterior motives, they would have not taken the money either. Let's hope other banks, not only here, but all over the country, follow SBFC's lead.
To all you local Allstate representatives: Now that your company is eligible to accept TARP funds, from a government that couldn't find it's hind quarters without a road map, be forewarned that my homeowners' insurance policy is soon up for renewal!
Am I really happy that the bank didn't take the TARP or am I really happy to see that my earned interest on deposits have drop big time. Which one should I be happy with? Since all local banks are so proud that they are paying less than 2% on deposits to their customers, it time to rethink their roles as a banker. Sure, they spend a lot of money promoting their banks and building bigger bank buildings, just give me that money on earned interest. I'm sure that they will have the customers coming to them in numbers. By advise to you: If you have a credit card or a loan that is 5% or more and you have the cash sitting in a bank, pay off that debt. You will be saving yourself money in the long run because at 1 1/2% interest on deposit, you are making the bank money and not you by keeping that debt. So GB&T, you say that you are listening to your customers, start back paying higher interest on deposits. My new banker will be the highest paying earned interest on deposits.
thanks georgia bank and trust,because i don't want to belong to a government owned bank,i would have to go back to burying my money in a mason jar
after reading this I am going to open an account with ga bank and trust ...
It is an awesome Bank, they know you by name and are local. Go for it!
Way to go Gb&T! Tell BimbObama to stuff his TARP takeover money up his posterior.
Some people need to get facts straight!
How can banks pay higher than 2% right now? No way if they want to remain independent. Kudos GB&T!!!!!!!!!!
We stand behind you!!!!!!!
They also provide the best popcorn in Augusta. Great bank in every way.
While it's good the bank didn't need TARP funds. Their 12 million is small potatoes compared to the size of TARP.This manufactured news,written to appeal to the anti TARP crowd.
Manufactured News?? It was the Bank being honest with the public that is all. The plain truth! Honesty, which few people know little about these days. Did you want that bank to not say a word about their decision? They had an obligation to let their clients know what was going on! For Pete's sake!
richmondcountyresident just another liberal crackpot,that just loves old big ears
RCR wants to be under govt control and so he/she/ thinks everyone else should be too.
Some banks were not given the choice to not accept TARP funds. They were forced. I don't blame Obama for this. It happened before he was Pres. And Nancy P is all caught up in the corruption of TARP. RCR, you are no where near smart enough to make an intelligent comment on this issue.
What Blanton of GB&T fails to mention to the public is that the "average joe" is only allowed to buy "common stocks." When a company/financial institution goes "belly up," the "average joe" loses it all while the executives and VIPs owning "preferred stocks" usually get some, if not all of their money back during bankruptcy precedings. In my humble opinion, his "best decision for the bank" wasn't for the little guy but for the executives of his bank and the bank's priviledged customers/friends who owned preferred stocks.