Today, the Georgia Department of Banking and Finance closed The Community Bank, headquartered in Loganville, Georgia and the FDIC was appointed as receiver of The Community Bank. Bank of Essex, headquartered in Tappahannock, Virginia, entered into a purchase and assumption agreement with the FDIC to assume all of the deposits of The Community Bank, and paid the FDIC a premium of $3.2 million in connection with that transaction. Bank of Essex also purchased approximately $84.4 million of The Community Bank’s assets. The FDIC reported that, as of October 17, 2008, The Community Bank had total assets of approximately $681 million and total deposits of approximately $611.4 million.
The FDIC has estimated that the cost to the Deposit Insurance Fund will be between $200 million and $240 million. The Community Bank is the twentieth bank failure in the country this year and the third in Georgia.