NetBank

The company was founded in February 1996 as Atlanta Internet Bank, one of the first direct banks in the United States. Using a business model typical of direct banks, NetBank paid higher than average interest rates in exchange for not having physical bank branches.

On July 29, 1997, NetBank Inc, completed its initial public offering, raising $42 million.{{cite web | url=https://www.nasdaq.com/markets/ipos/company/netbank-inc-10779-8582 | title=NETBANK INC (NTBK) IPO | publisher=NASDAQ}}

In 1998, the company changed its name to Net.B@nk.{{cite news | url=https://www.bizjournals.com/atlanta/stories/1998/08/10/daily4.html | title=Atlanta Internet Bank to become Net.B@nk | work=American City Business Journals | date=August 10, 1998}}

In 1999, during the dot-com bubble, NetBank's stock price per share ranged from $3.50 to $83.{{cite news | url=https://www.bizjournals.com/atlanta/stories/1999/10/11/focus1.html | title=Net bank stocks buckle down for the long haul | first=Jim | last=Molis | work=American City Business Journals | date=October 11, 1999}}

In March 2001, the bank acquired deposit accounts from CompuBank.{{cite news | url=https://www.bizjournals.com/houston/stories/2001/03/26/daily33.html | title=NetBank acquires CompuBank deposit accounts | work=American City Business Journals | date=March 30, 2001}}

In July 2001, the bank acquired Market Street Mortgage.{{cite news | url=https://www.bizjournals.com/atlanta/stories/2001/07/02/daily1.html | title=NetBank completes Market Street Mortgage acquisition | work=American City Business Journals | date=July 2, 2001}}

In 2002, the bank acquired Resource Bancshares Mortgage Group.{{cite web | url=https://www.sec.gov/Archives/edgar/data/1035826/000091205702013979/a2075804z8-k.htm | title=NetBank, Inc. FORM 8-K | publisher=U.S. Securities and Exchange Commission | date=April 5, 2002}} Douglas K. Freeman was appointed CEO of the company as of March 31, 2002 and was appointed chairman as of January 29, 2003.{{cite web | url=https://www.sec.gov/Archives/edgar/data/1035826/000104746903011433/a2105614zdef14a.htm | title=NETBANK, INC. Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 | publisher=U.S. Securities and Exchange Commission | date=March 28, 2003}}

In November 2003, NetBank began offering vehicle insurance through sister company NetInsurance and began offering direct consumer auto loans through Florida auto dealerships.{{cite press release | url=https://www.businesswire.com/news/home/20031110005135/en/NetBank-Launches-Homeowners-Insurance-Sister-Company-NetInsurance | title=NetBank Launches Homeowners Insurance Through Sister Company NetInsurance, Inc.; Consumers Now Have Easy Access to Insurance Products for the Home and Auto from Top Providers | publisher=Business Wire | date=November 10, 2003}} In December 2003, NetBank acquired Financial Technologies Inc., a provider of ATMs and retail transaction processing services.{{cite press release | url=https://www.businesswire.com/news/home/20031208005853/en/NetBank-Completes-Acquisition-Financial-Technologies-Acquisition-Part | title=NetBank, Inc. Completes Acquisition of Financial Technologies, Inc.; Acquisition is Part of Company's Revenue Diversification Strategy | publisher=Business Wire | date=December 8, 2003}}

In July 2004, NetBank acquired the assets of Beacon Credit Services, a provider of recreational vehicle, boat, and aircraft financing.{{cite press release | url=https://www.businesswire.com/news/home/20040702005065/en/NetBank-Completes-Deal-Beacon-Credit-Services | title=NetBank, Inc. Completes Deal with Beacon Credit Services | publisher=Business Wire | date=July 2, 2004}}{{cite news | url=https://www.bizjournals.com/atlanta/stories/2004/06/07/daily31.html | title=NetBank to buy Beacon Credit Services | work=American City Business Journals | date=June 11, 2004}}

NetBank reported a loss in 2005 as a result of a provision for bad loans.{{cite press release | url=https://www.businesswire.com/news/home/20051114005911/en/NetBank-Reports-Financial-Results-Quarter-Loss-.03 | title=NetBank, Inc. Reports Financial Results for Third Quarter; Loss of $.03 per Share Based on $3.5 Million Provision Related to Previously Identified Issues on a Limited Group of Loans | publisher=Business Wire | date=November 14, 2005}}

In 2006, Netbank began offering check deposit services via The UPS Store.{{cite press release | url=https://globenewswire.com/news-release/2006/03/09/340368/95421/en/Financial-Technologies-Inc-Adds-ebank-to-QuickPost-Deposit-and-Payment-Forwarding-Service.html | title=Financial Technologies, Inc. Adds ebank to QuickPost Deposit and Payment Forwarding Service | publisher=Globe Newswire | date=March 9, 2006}}

In 2006, NetBank lowered its documentation and underwriting standards to increase loan production. NetBank sold many of its loans to other investors, with the loans being partially recourse to NetBank. In 2006, NetBank was forced to repurchase $182 million in bad loans that it sold previously.{{cite web | url=https://www.treasury.gov/about/organizational-structure/ig/Documents/OIG08032.pdf | title=SAFETY AND SOUNDNESS: Material Loss Review of NetBank, FSB (OIG-08-032) | publisher=United States Department of the Treasury | date=April 23, 2008 }}

In November 2006, the company's independent auditor, Ernst & Young, resigned.

For the full year 2006, the company reported a $202 million loss.{{cite news | url=https://www.bizjournals.com/atlanta/stories/2007/02/19/daily13.html | title=NetBank annual loss reaches $202 million | work=American City Business Journals | date=February 21, 2007}}

On May 1, 2007, the company sold NetBank Payment Systems, its ATM and merchant-servicing operation.{{cite press release | url=https://www.gopai.com/res/uploads/press/2007-05-07-PAI-Press-NPS-070430(c).pdf | title=Payment Alliance International Acquires NetBank Payment Systems | publisher=Payment Alliance International | date=May 7, 2007}}

On May 21, 2007, NetBank reached an agreement to sell its core banking operation to EverBank.{{cite press release | url=https://globenewswire.com/news-release/2007/05/21/360135/119898/en/NetBank-Reaches-Agreement-With-EverBank-for-Sale-of-Select-Assets-and-Assumption-of-Deposit-Liabilities.html | title=NetBank Reaches Agreement With EverBank for Sale of Select Assets and Assumption of Deposit Liabilities | publisher=GlobeNewswire | date=May 21, 2007}} All accounts were to have been transferred by September 15, 2007, but the deal depended on NetBank coming up with some cash, which it expected to realize from the sale of other investments. NetBank was unable to sell those investments, and on September 17, 2007, EverBank terminated the agreement.

On May 15, 2007, NetBank received a warning from the NASDAQ because it was late in filing its quarterly report. NetBank received a similar notice from Nasdaq in March 2007 because it did not file its 2006 annual report on time as a result of the resignation of its auditor.{{cite web | url=http://securities.stanford.edu/filings-documents/1038/NTBKPK_01/200873_r01c_072928.pdf | title=IN RE NETBANK, INC. SECURITIES LITIGATION | date=July 3, 2008}}

In February 2007, NetBank hired Porter Keadle Moore LLP as its new independent auditor and said it planned to file the annual and quarterly reports by the end of June 2007.{{cite news | url=https://www.americanbanker.com/news/despite-revamp-netbank-will-stay-in-red-this-quarter-ab303826 | title=Despite Revamp, NetBank Will Stay in Red This Quarter | first=Daniel | last=Wolfe | work=American Banker | date=February 22, 2007}}{{cite news | url=https://www.bizjournals.com/atlanta/stories/2007/03/19/daily41.html | title=NetBank warned of delisting | work=American City Business Journals | date=March 23, 2007}}

On July 3, 2007, NetBank Inc. received a deficiency notice from the NASDAQ because its stock for the previous 30 consecutive business days failed to close above the minimum bid price of $1 per share.{{cite press release | url=https://globenewswire.com/news-release/2007/07/09/362357/122620/en/NetBank-Inc-Receives-NASDAQ-Deficiency-Notice.html | title=NetBank, Inc. Receives NASDAQ Deficiency Notice | publisher=Globe Newswire | date=July 9, 2007}} On August 3, it was delisted from the Nasdaq.

On September 28, 2007, the Office of Thrift Supervision (OTS) announced that it had closed NetBank in conjunction with the Federal Deposit Insurance Corporation.{{cite web | url=https://www.fdic.gov/bank/individual/failed/netbank.html | title=FDIC: Bank Closing Information for NetBank | publisher=Federal Deposit Insurance Corporation | date=September 28, 2007}} The shutdown was the biggest failure of a savings and loan association since the savings and loan crisis in the 1980s.{{cite news | title=Online Bank Fails and Regulators Shut It | url=https://www.nytimes.com/2007/09/29/business/29netbank.html | agency=Associated Press | work=The New York Times | date=September 29, 2007 | url-access=subscription}} It was also the biggest bank failure in Georgia.{{cite news | url=https://www.bizjournals.com/atlanta/stories/2008/08/25/daily86.html | title=NetBank closed by feds in 2007 | first=Joe | last=Rauch | work=American City Business Journals | date=August 10, 1998}} All of its customers, including its $1.4 billion in FDIC-insured deposits, as well as some loan assets, were sold to ING Group for $14 million.{{cite press release | url=https://www.businesswire.com/news/home/20070928005759/en/ING-DIRECT-Acquires-Deposits-NetBank | title=ING DIRECT Acquires Deposits of NetBank | publisher=Business Wire | date=September 28, 2007}}{{cite news | url=http://news.bbc.co.uk/2/hi/business/7020802.stm | title=ING wins from online bank failure | work=BBC | date=September 30, 2007}}

Customers with balances exceeding the FDIC limit received 50% of the excess balance and became creditors in the bank's receivership for the remainder.{{cite news | url=https://www.computerworld.com/article/2541254/fdic-shuts-down-netbank.html | title=FDIC shuts down NetBank | first=Linda | last=Rosencrance | work=Computer World | date=October 1, 2007}}

In November 2007, NetBank Inc., parent of the savings-and-loan, filed for bankruptcy protection and announced intentions to liquidate, including selling its real estate in Columbia, South Carolina as well as its captive insurance subsidiary M.G. Reinsurance Inc. Federal savings and loan associations are prohibited from filing for bankruptcy protection and must be liquidated by the FDIC.{{cite news | url=https://www.reuters.com/article/us-netbank-idUSN2641012020071126 | title=NetBank says to liquidate in bankruptcy | first=Jonathan | last=Stempel | work=Reuters | date=November 26, 2007}}

A class action lawsuit was filed by former shareholders against certain officers and directors of the company alleging that they inflated the stock price by making misleading statements. The lawsuits were settled in November 2011 for $12.5 million.{{cite news | url=https://www.law360.com/articles/284717/judge-clears-12-5m-deal-in-netbank-investors-suit | title=Judge Clears $12.5M Deal In NetBank Investors' Suit | first=Roxanne | last=Palmer | work=Law360 | date=November 9, 2011 | url-access=subscription}}

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Category:1996 establishments in Georgia (U.S. state)

Category:1997 initial public offerings

Category:2007 disestablishments in Georgia (U.S. state)

Category:Banks disestablished in 2007

Category:Bank failures in the United States

Category:Banks established in 1996

Category:Defunct banks of the United States

Category:Defunct companies based in Georgia (U.S. state)

Category:Online financial services companies of the United States

Category:Online banks

Category:Banks based in Georgia (U.S. state)

Category:Companies that filed for Chapter 11 bankruptcy in 2007