The bank has at least one branch in Pike Road and Montgomery.
The FDIC says all deposit accounts have been transferred to Beal Bank, of Plano, Texas and will be available immediately. On Monday, December 21, 2009, the former New South Federal Savings Bank locations will reopen as branches of Beal Bank.
New South Federal Savings follows two other Alabama bank failures in 2009. Those banks, Birmingham-based CapitalSouth and Montgomery-based Colonial Bank, were closed in August.
Colonial ranks as one of the largest bank failures in U.S. History.
New South had approximately $1.5 billion in total assets and $1.2 billion in total deposits according to the FDIC. Beal Bank did not pay the FDIC a premium for the deposits of New South Federal Savings Bank. In addition to assuming all of the deposits of the failed bank, Beal Bank agreed to purchase essentially all of the failed bank's assets.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-423-6395. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; and thereafter from 8:00 a.m. to 8:00 p.m., CST. Due to the Christmas Holiday, the toll-free number will not be operational between the hours of 3 p.m., Thursday, December 24, and 8:00 a.m., Monday, December 28. At that time the toll-free number will resume its normal hours.