Today, the Georgia Department of Banking and Finance closed the Georgian Bank, headquartered in Atlanta, Georgia, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company, Inc., headquartered in Columbia, South Carolina, to assume all the deposits of Georgian Bank.

As of July 24, 2008, Georgian Bank had total assets of $2 billion and total deposits of approximately $2 billion. First Citizens Bank also agreed to purchase essentially all of the assets of the failed bank. The FDIC and First Citizens entered into a loss-share transaction on approximately $2 billion of Georgian Bank’s asses.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $892 million. Georgian Bank is the 95th bank to fail in the nation this year and the 19th in Georgia.