From the FDIC moments ago:
The First State Bank, Stockbridge, 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 The First State Bank.
The seven branches of The First State Bank will reopen during their normal business hours beginning Saturday as branches of Hamilton State Bank. Depositors of The First State Bank will automatically become depositors of Hamilton State Bank.[. . .]
As of September 30, 2011, The First State Bank had approximately $536.9 million in total assets and $527.5 million in total deposits. Hamilton State Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of The First 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 $216.2 million. Compared to other alternatives, Hamilton State Bank’s acquisition was the least costly resolution for the FDIC’s DIF. The First State Bank is the second FDIC-insured institution to fail in the nation this year, and the first in Georgia. The last FDIC-insured institution closed in the state was Community Bank of Rockmart, Rockmart, on November 10, 2011.
That’s a significant loss to the DIF compared to some of the smaller closures we’ve seen in this crisis.
The First State Bank is the 75th bank to be closed in Georgia since 2008. Stockbridge is in Henry County in the Atlanta metro area.
Central Florida State Bank was also closed today. From the FDIC:
As of September 30, 2011, Central Florida State Bank had approximately $79.1 million in total assets and $77.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, CenterState Bank of Florida, National Association agreed to purchase essentially all of the assets. [. . .]
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.4 million.
As I’ve said repeatedly over the past year, the Georgia legislature should be taking a hard look at how state policies regarding bank charters and/or regulatory failings might have contributed to the fact that Georgia leads the nation in bank closures during this crisis.