Today, the Georgia Department of Banking and Finance closed Community Bank of West Georgia, headquartered in Villa Rica, Georgia, and Neighborhood Community Bank, headquartered in Newnan, Georgia, and named FDIC as receiver of both failed banks. These closures bring the total number of bank failures in the nation to forty-two and nine in Georgia.

As receiver, the FDIC approved a payout of Community Bank of West Georgia’s insured deposits. As of May 15, 2009, Community Bank of West Georgia had total assets of approximately $199.4 million and total deposits of $182.5 million. At closing, the failed bank had approximately $1.1 million of uninsured deposits. The FDIC estimates that the cost to the Deposit Insurance Fund will be $85 million.

As receiver for Neighborhood Community Bank, the FDIC entered into a purchase and assumption agreement with CharterBank, headquartered in West Point, Georgia, to assume all of the deposits of the failed bank. As of March 31, 2009, Neighborhood Community Bank had total assets of $221.6 million and total deposits of approximately $191.3 million. Charter Bank also agreed to purchase approximately $209.6 million of assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and Charter Bank entered into a loss-share agreement covering approximately $178.5 million of Neighborhood Community Bank’s assets. The FDIC estimates the cost to the Deposit Insurance Fund will be $66.7 million.