I’ve been writing a lot about the banking crisis in Georgia, and I’m not going to repeat all my concerns in this post.
It was predictable that the FDIC would be back in the state this weekend. Southern National Bank of Statesboro was shut down on August 19th and acquired by Heritage Bank of the South. That was the first failure in Georgia since July. Last week there were no closures, pehaps because of the impending turmoil expected from Hurricane Irene.
Given the number of problem banks in Georgia, we were certainly overdo for another FDIC visit.
This afternoon, CreekSide Bank of Woodstock failed. So did Patriot Bank of Georgia in Cumming. Both banks were acquired by Georgia Commerce Bank.
From the FDIC press release:
Georgia Commerce Bank, Atlanta, Georgia, acquired the banking operations, including all the deposits, of Patriot Bank of Georgia, Cumming, Georgia, and CreekSide Bank, Woodstock, Georgia. The two banks were 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 Georgia Commerce Bank.
Patriot Bank of Georgia had one branch, and CreekSide Bank had two branches. [. . .]
As of June 30, 2011, Patriot Bank of Georgia had approximately $150.8 million in total assets and $111.2 million in total deposits; and CreekSide Bank had total assets of $102.3 million and total deposits of $96.6 million. In addition to assuming all of the deposits of the two Georgia banks, Georgia Commerce Bank agreed to purchase essentially all of their assets. [. . .]
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Patriot Bank of Georgia will be $44.4 million and for CreekSide Bank, $27.3 million. Compared to other alternatives, Georgia Commerce Bank’s acquisition of the two institutions was the least costly resolution for the FDIC’s DIF.
The closings are the 69th and 70th FDIC-insured institutions to fail in the nation so far this year and the eighteenth and nineteenth in Georgia. The last FDIC-insured institution closed in the state was First Southern National Bank, Statesboro on August 19, 2011.
Cumming is a small town in Forsyth County northeast of Atlanta. Woodstock is in Cherokee County, north-northwest of Atlanta.