Earlier today, First Coweta Bank, headquartered in Newnan, Georgia, was closed by the Georgia Department of Banking and Finance, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with United Bank, Zebulon, Georgia, to assume all the deposits of First Coweta, other than brokered deposits, for a 1.01% premium.

As of July 31, 2009, First Coweta had total assets of $167 million and total deposits of $155 million. UnitedBank will also purchase $155 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and United Bank entered into a loss-share transaction on approximately $124 million of the First Coweta’s assets. UnitedBank did not assume the $11 million in brokered deposits. The FDIC will pay the brokers directly for the amount of their funds.

The FDIC estimates the cost to the Deposit Insurance Fund will be $48 million. First Coweta is the 79th bank to fail in the nation this year and the 18th in Georgia.