It’s Friday so there must be another Georgia bank failure

The FDIC reported this afternoon that McIntosh State Bank in Jackson is the latest Georgia bank to fail:

McIntosh State Bank, Jackson, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Hamilton State Bank, Hoschton, Georgia, to assume all of the deposits of McIntosh State Bank.

The four branches of McIntosh State Bank will reopen on Saturday as branches of Hamilton State Bank. Depositors of McIntosh State Bank will automatically become depositors of Hamilton State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of McIntosh State Bank should continue to use their existing branch until they receive notice from Hamilton State Bank that it has completed systems changes to allow other Hamilton State Bank branches to process their accounts as well. [. . .]

As of March 31, 2011, McIntosh State Bank had approximately $339.9 million in total assets and $324.4 million in total deposits. Hamilton State Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of McIntosh State Bank. In addition to assuming all of the deposits of the failed bank, Hamilton State Bank agreed to purchase essentially all of the assets. [. . .]

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $80.0 million.

The entire press release is here. Jackson, Georgia is the seat of Butts County, a relatively lightly populated area on the southern fringe of the Atlanta metro area.

Georgia leads the nation in bank failures since 2007. It’s a problem that I have written about repeatedly in this blog. The FDIC’s failed bank list is here.