EdBancorp is owned by Educational Services of America, which does business as EdSouth Services. EdSouth Services, located in Knoxville, is a nonprofit corporation that provides programs for postsecondary education through its Student Outreach Services, eCampus Tours and need-based scholarships for students.
According to the 2009 press release, EdSouth bought Community Bank of the Cumberlands to expand EdSouth’s core group of products and services, which includes student loans.
On July 25, Standard & Poor’s Rating Services assigned its “AA+ sf” rating to Educational Funding of the South's $511 million student loan asset-backed notes series 2012-1A. The note issuance is backed by student loans that are at least 97 percent reinsured by the U.S. federal government.
Under the terms of the possible merger with SouthEast Bancshares, EdBancorp Inc. would survive and SouthEast Bancshares would cease. However, the SouthEast Bank and Trust name would continue with Community Bank of the Cumberlands merged with and into SouthEast Bank and Trust. Under the stated terms, $22,581,520 would be divided among SouthEast Bancshares shareholders of all classes upon completion of the merger.
The merger information is contained in a letter to Southeast Bancshares shareholders. A voice mail to the media spokesperson at SouthEast Bank in Athens was not returned to confirm the information.
EdBancorp bought Community Bank of the Cumberlands in 2009. John E. Arnold Jr., president of Educational Services of America, and Don Calcote, president of Community Bank of the Cumberlands, announced that merger in a November 2009 press release. Under the terms of that merger, Community Bank of the Cumberlands continued operations as a separately chartered bank with branches in Cookeville and Jamestown.