CertusBank

CertusBank

Company type	Subsidiary
Industry	Banking, Financial services
Founded	2010
Founder	Angela Webb, Walter Davis, Milton Jones Jr., Charles Williams
Defunct	2015
Fate	Liquidation
Headquarters	Greenville , United States
Area served	The Carolinas, Florida, Georgia
Products	Retail banking, Consumer lending, Wholesale banking, Wealth management, Mortgage financing
Parent	CertusHoldings, Inc.

CertusBank was a nationally chartered bank in the United States, headquartered in Greenville, South Carolina, with additional offices located in Atlanta, Georgia and Charlotte, North Carolina. At its height, the institution operated more than 30 branches throughout The Carolinas, Florida, and Georgia. The bank ceased operations in 2015 due to financial challenges, with creditors agreeing to a final resolution in 2017.

The bank provided a range of services including retail banking, consumer lending, wholesale banking, wealth management, and mortgage financing.

CertusBank, N.A. functioned as a subsidiary of CertusHoldings, Inc. (previously known as Blue Ridge Holdings, Inc.), which was based in Atlanta, Georgia. The company was established by former executives from Bank of America and Wachovia.

Beginning in 2011, the bank expanded through a series of acquisitions such as CommunitySouth Bank and Trust (Easley, SC), Atlantic Southern Bank (Macon, GA), and First Georgia Banking Company (Franklin, GA). Subsequent purchases included Myers Park Mortgage (Charlotte, NC), Hometown Community Bank (Braselton, GA), Quadrant Financial (Savannah, GA), Resource Financial Services (Columbia, SC), and Parkway Bank (Lenoir, NC).

History

The founding members of CertusBank were Angela Webb, Walter Davis, Milton Jones Jr., and Charles Williams. In 2010, CertusHoldings obtained a shelf charter from the Comptroller of the Currency and successfully raised $500 million from investors.

On January 21, 2011, CertusBank acquired the failed CommunitySouth Bank & Trust located in Easley, South Carolina. As of September 30, 2010, CommunitySouth held deposits totaling $402.4 million and assets amounting to $440.6 million. The FDIC assumed responsibility for $211 million in non-performing loans. Following this acquisition, Easley became the bank’s main headquarters.

In May 2011, CertusBank further expanded by acquiring two failed banks in Georgia—Atlantic Southern Bank with assets of $741.9 million and First Georgia Banking Company—together representing over $1 billion in assets. The FDIC covered problem loans valued at $273.5 million and $156.5 million for these institutions respectively.

In October 2011, CertusBank enhanced its wealth management offerings by acquiring Sage Southeastern Securities based in Atlanta.

Between 2012 and 2013, the bank continued its acquisition strategy by purchasing Myers Park Mortgage (Charlotte), Quadrant Financial (Savannah)—which positioned it as South Carolina’s largest SBA 7A lender—as well as Hometown Community Bank (Braselton), Resource Financial Services (Columbia), and Parkway Bank (Lenoir). These acquisitions bolstered its mortgage lending and small business financing capabilities.

On August 19, 2013, CertusBank announced a strategic investment in Monarch Business and Wealth Management—a firm specializing in services for professional athletes, entertainers, and affluent families.

In 2014, leadership transitions took place with John S. Poelker appointed as interim CEO and Dr. Robert L. Wright assuming the role of chairman. Poelker stepped down in May 2015 due to health concerns; Len Davenport succeeded him as interim CEO.

Amid escalating losses and accusations concerning excessive executive expenditures during 2015, CertusBank opted for liquidation. Hedge fund investors initiated lawsuits while the founders filed defamation countersuits. The U.S. Treasury’s Office of the Comptroller of the Currency imposed penalties related to extravagant spending practices. Ultimately, creditors agreed to a settlement equating to seven cents on the dollar.

Community engagement

CertusBank contributed to numerous local organizations, such as the Peace Center for the Performing Arts, Habitat for Humanity, Greenville County Museum of Art, Northside Development Corporation, and the South Carolina Governor's School for Science and Mathematics.