Davis Polk & Wardwell LLP advised FBR Capital Markets Corp. in its role as financial adviser and placement agent for State Bank & Trust Co. on its $300 million capital raising and FDIC-assisted acquisition of Security Bank. The transaction closed on July 24, 2009. The transaction presented substantial complications as it occurred during the pendency of the FDIC's policy statement on private capital investments in failed banks, requiring extensive negotiation with senior staff of the FDIC on a variety of sensitive issues on behalf of the investors.

State Bank & Trust Co. agreed to acquire the assets and deposits of the six community banks operated by Security Bank Corp. in an FDIC-assisted transaction. State Bank had $35 million in assets and raised approximately $300 million in capital to support the acquisition. The six Security banks had total assets of approximately $2.8 billion.

The Davis Polk corporate team included partner John L. Douglas of the Washington, DC office and partners Randall D. Guynn and Luigi L. De Ghenghi, with assistance from associates Cristina V. Regojo and Peter E. Devlin. Except as noted above, all members of the Davis Polk team are based in the New York office.