On Friday, the Georgia Department of Banking and Finance closed Bank of Ellijay, headquartered in Ellijay, Georgia, First Commerce Community Bank, headquartered in Douglasville, Georgia, and The Peoples Bank, headquartered in Winder, Georgia, and appointed the FDIC as receiver for each bank. The failed banks were not affiliated with one another. As receiver, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, headquartered in Carrollton, Georgia, to assume all of the deposits of the three failed banks.
As of June 30, 2010, Bank of Ellijay had approximately $168.8 million in total assets and $160.7 million in total deposits; First Commerce Community Bank had approximately $248.2 million in total assets and $242.8 million in total deposits; and The Peoples Bank had approximately $447.2 million in total assets and $398.2 million in total deposits. Community & Southern Bank will pay the FDIC a premium of 1.0% to acquire all of the deposits of the Bank of Ellijay and First Commerce Community Bank and a premium of 1.25% to acquire all of the deposits of The Peoples Bank. In addition, Community & Southern Bank will purchase essentially all of the failed banks’ assets. Community & Southern Bank entered into a loss-share transaction on approximately $602.5 million of the failed banks’ assets.
The FDIC estimates that the cost to the Deposit Insurance Fund for the three failed banks will be $225.5 million, comprised of $55.2 million for Bank of Ellijay, $71.4 million for First Commerce Community Bank, and $98.9 million for The Peoples Bank. These failures bring the total number of failures to 123 for the nation and to 14 for Georgia. Community & Southern has now acquired five failed banks.