After more than 50 years of business, Park Avenue Bank closed its doors Friday afternoon.

It is scheduled to reopen today as part of Bank of the Ozarks, which is headquartered out of Little Rock, Ark. The Federal Deposit Insurance Corporation has insured all deposits and all Park Avenue Bank depositors automatically become depositors of the Bank of the Ozarks, according to the FDIC.

The Georgia Department of Banking and Finance closed Park Avenue Bank at the end of business hours Friday.

“I am deeply saddened that The Park Avenue Bank was placed into receivership,” said James L. Dewar Jr., the bank’s chairman of the board of directors. “Unfortunately, the bank could not weather the greatest economic crisis since the Great Depression. As this prolonged economic crisis negatively affected our markets, many of our customers were unable to satisfy their obligations on their loans and the bank sustained losses that were too much to bear. We explored countless alternatives in order to raise capital and save the bank, but we were ultimately unsuccessful. On behalf of the board of directors, I want to thank everyone _ our employees, our management team and especially our customers _ for sticking  with us as we tried to work through these extraordinary difficult times. When the bank was founded in 1956, we set out to serve the credit needs of this community. I am hopeful that the Bank of the Ozarks will do the same.”

The FDIC assures that banking operations will not be interrupted by this transfer.

“Customers … should continue to use their former branches until they receive notice from Bank of the Ozarks that it has completed systems changes to allow other branches of Bank of the Ozarks to process their accounts as well,” said LaJuan Williams-Young, an FDIC spokesperson. “Over the weekend, depositors can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.”

Bank of the Ozarks acquired Park Avenue Bank and First Choice Community Bank of Dallas, Ga., Friday. The FDIC and Bank of the Ozarks entered into a loss-share transaction on both banks. The loss-share transaction for Park Avenue Bank was $514.1 million. Bank of Ozarks will share in the losses on the asset pools under this agreement.

“Loss-share transactions are projected to maximize returns on the assets covered by keeping them in the private sector,” according to the FDIC. “The transactions also are expected to minimize disruptions for loan customers.”

As of Dec. 31, 2010, Park Avenue Bank has assets totaled at $953.3 million and total deposits of $827.7 million. In addition to assuming all deposits, Bank of Ozarks essentially purchases all of the bank’s assets.

Park Avenue Bank had been working under an agreement with the Federal Reserve for nearly two years. The Federal Reserve had accepted the bank’s submitted capital plan.

Last December, the Federal Reserve issued a corrective action ordering Park Avenue to sell new shares or find a buyer within 90 days. The Fed issues such corrective actions when a bank’s capital reaches a certain level. If a bank is undercapitalized, action must be taken.

The Federal Reserve directed Park Avenue to increase the bank’s equity through the sale of shares or contributions to surplus; enter into and close a contract to be acquired by a depository institution holding company or combine with another insured depository institution; and take other necessary steps to make the bank adequately capitalized.

NASDAQ sent a letter to Park Avenue Bank, also known as PAB Bancshares, that it was not in compliance with one of the stock market’s listing rules earlier this month when the bank failed to timely file its annual report for 2010. PAB was unable to file its annual report because it had not then completed audited financial statements.

Friday’s closing represents the end of an era for Valdosta. Park Avenue Bank was the only publicly traded company headquartered in Valdosta. Though it had closed branches in early 2010, it still maintained its headquarters on North Oak Street Extension, three branches in Lowndes County, and Georgia branches in Oakwood, Athens, Stockbridge, McDonough, Bainbridge, Cairo, as well as a branch in Ocala, Fla.

James L. Dewar Sr. and his wife, Dorothy, established Park Avenue Bank in 1956.

Information from the FDIC

Customers who have questions about The Park Avenue Bank can call the FDIC toll free: 1-800-894-5183 The phone number is operational today from 9 a.m. to 6 p.m. EDT; on Sunday from noon until 6 p.m. EDT; and thereafter from 8 a.m. to 8 p.m. EDT.

Park Avenue Bank’s website, parkavebank.com, has been reconfigured to include the FDIC and Bank of the Ozarks with information for customers. Customers can also visit a special FDIC website: www.fdic.gov/bank/individual/failed/parkavenue_ga.html