Georgia-based Bank Becomes 23rd Failure This Year
Jackson, Georgia-based First Georgia Community Bank was closed Friday by the Georgia Department of Banking and Finance, and became the 23rd bank this year to head into the hands of the Federal Deposit Insurance Corporation. The small bank's deposits were acquired by United Bank, another Georgia-based banking institution; the failed bank had just four branches, according to an FDIC statement. The small community bank had total assets of $237.5 million and total deposits of $197.4 million the FDIC said; interestingly, United Bank agreed to assume all the deposits for less than their face value, paying only an .811 percent premium. In addition to assuming all of the failed bank's deposits, according to the FDIC, United Bank will purchase approximately $60.6 million of assets., as well. Nonetheless, the FDIC estimates that the cost to the Deposit Insurance Fund will be $72.2 million. Like most bank failures this year, the failed community bank overreached into construction and land development lending: call report data from the end of Sept. shows that First Georgia held $194.3 million in C&D loans on its books, and another $10.1 million in commercial and industrial loans. Of that, nearly $50 million was past due and in non-accrual status at the end of Q3. First Georgia Community Bank, the failed bank, is not affiliated with First Georgia Banking Company, the FDIC said. Write to Paul Jackson at firstname.lastname@example.org.