Saturday, December 6, 2008

Georgia bank closed in 23rd failure of year

Friday, December 5, 2008
FDIC Friday - 23rd bank failure of the year
Georgia bank closed in 23rd failure of year
By John Letzing, MarketWatch
Last update: 5:36 p.m. EST Dec. 5, 2008

SAN FRANCISCO (MarketWatch) -- First Georgia Community Bank was closed by regulators Friday, marking the 23rd bank failure of the year amid the ongoing financial crisis.
The closure also represents the fourth so far this year in the Atlanta area.

The four branches of Jackson, Ga.-based First Georgia will re-open Saturday as United Bank, which has assumed First Georgia's deposits, the Federal Deposit Insurance Corp. said in a statement.

United Bank agreed to assume the deposits for a 0.811 premium, the FDIC said, and it will purchase roughly $60.6 million of First Georgia's assets.
As of Nov. 7, First Georgia had $237.5 million in assets and $197.4 million in deposits, the FDIC said.

The FDIC estimated the closure will cost its Deposit Insurance Fund $72.2 million.
Other banks in the Atlanta area closed this year include Loganville-based The Community Bank, and Alpharetta-based Integrity Bancshares Inc. and Alpha Bank & Trust.

John Letzing is a MarketWatch reporter based in San Francisco.

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