Greater Atlantic Bank
| Company type | Community bank |
|---|---|
| Industry | Banking |
| Founded | May 27, 1887 |
| Defunct | December 4, 2009 |
| Fate | Closed by Office of Thrift Supervision; assets acquired by Sonabank |
| Headquarters | Reston , United States |
Area served | United States |
| Products | Banking services |
Greater Atlantic Bank (abbreviated as GAB) was a U.S.-based community bank that commenced operations in May 1887 and ceased functioning in December 2009. It marked the initial bank collapse during the Great Recession and was Virginia's first bank failure since 1993.
Prior to its closure by regulatory authorities on October 20, 2009, GAB possessed assets totaling $203 million alongside deposits amounting to $179 million. Following its shutdown, Sonabank acquired its assets.
History
The institution originally launched on May 27, 1887, under the name Greater Baltimore Savings and Loan Association. It underwent a rebranding to Greater Atlantic Savings Bank on May 31, 1989, and later adopted the name Greater Atlantic Bank on April 20, 1998. The bank shifted its main office from Baltimore to Rockville, Maryland in 1991, then moved again to Reston, Virginia in 1999.
On August 22, 2000, Greater Atlantic finalized the purchase of Dominion Savings Bank. In June 2009, an agreement was reached for Greater Atlantic Financial Corp. to acquire Greater Atlantic Bank; nevertheless, the transaction was unsuccessful on four occasions due to regulatory complications and approval setbacks.
The Office of Thrift Supervision officially shut down Greater Atlantic on December 4, 2009. Sonabank took over its deposits and most of its assets. The following day, the bank’s five branches reopened under Sonabank branding, with depositors automatically becoming clients of Sonabank. Additionally, Sonabank entered into a loss-sharing arrangement with the FDIC covering $145 million worth of Greater Atlantic's assets.