Bankruptcy

FDIC Seizes First Georgia Community Bank

By Scott Riddle

From the Atlanta Business Chronicle, the Federal Deposit Insurance Corp. (FDIC) seized the assets of First Georgia Community Bank late today. See the FDIC Release by clicking here.

Zebulon, Ga.-based United Bank will assume all of the deposits of Jackson, Ga.-based First Georgia Community, according to announcements by the Federal Deposit Insurance Corp. and Georgia Department of Banking & Finance.

As of Nov. 7, First Georgia Community had $197.4 million in total deposits in four branches, while United Bank posted $553 million in deposits in third quarter 2008, according to FDIC data.

United Bank is acquiring the deposits for a 0.811 percent premium, and the FDIC expects the failure will cost its insurance fund $72 million.

United Bank also purchased $60.6 million in assets as part of the deal. The FDIC will hold the remainder of First Georgia Community’s assets, totaling $237.5 million, for later disposition.

 

Full post as published by Georgia Bankruptcy Blog on December 05, 2008 (boomark / email).