On Friday, the OCC closed First National Bank of Georgia , headquartered in Carrollton, Georgia, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, a newly chartered Georgia bank, to assume all of the deposits of First National Bank of Georgia. Community & Southern Bank agreed to pay the FDIC a premium of 1.25% for the deposits of the failed bank.
As of September 30, 2009, the failed bank had approximately $832.6 million in total assets and $757.9 million in total deposits. Community & Southern Bank agreed to purchase essentially all of the failed bank's assets. The FDIC and Community & Southern Bank entered into a loss-share transaction on $607.4 million of First National Bank of Georgia's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $260.4 million. First National Bank of Georgia is the tenth FDIC-insured institution to fail in the nation this year and the first to fail in Georgia since Rockbridge Commercial Bank on December 18, 2009.