On Friday, the Office of the Comptroller of the Currency closed The First National Bank of Barnesville, headquartered in Barnesville, Georgia, and appointed the FDIC as receiver. As receiver the FDIC entered into a purchase and assumption agreement with United Bank, headquartered in Zebulon, Georgia, to assume all of the deposits of the failed bank.
As of June 30, 2010, The First National Bank of Barnesville had approximately $131.4 million in total assets and $127.1 million in total deposits. United Bank did not pay the FDIC a premium for the deposits of The First National Bank of Barnesville, but did agree to purchase essentially all of the failed bank's assets. The FDIC and United Bank entered into a loss-share transaction on $107.3 million of The First National Bank of Barnesville's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $33.9 million. The First National Bank of Barnesville is the 136th FDIC-insured institution to fail in the nation this year, and the 16th in Georgia. This is the third failed bank acquired by United Bank.