Georgia-Based Community Bank Becomes 20th Failure This Year
Bank Investment ConsultantAmerican Banker
By Joe Adler
November 21, 2008
The Community Bank, a $681 million-asset institution in Loganville, Ga., became the industry's 20th failed bank of the year.
The closure was also the year's third failure—and the second in less than a month - in Georgia, which has been hit hard by the real estate downturn.
The Federal Deposit Insurance Corp., appointed by state regulators as the bank's receiver, said Virginia-based Bank of Essex agreed to assume all of Community's $611 million in deposits. The $383 million-asset bank in Tappahannock, Va., paid a $3.2 million deposit premium, and agreed to buy roughly $84.4 million of The Community Bank's assets.
The FDIC said the failure is estimated to cost the Deposit Insurance Fund between $200 million and $240 million.
Other recent Georgia failures include the Oct. 24 collapse of $354.1 million-asset Alpha Bank and Trust, and the Aug. 29 failure of $1.1 billion-asset Integrity Bank. Both were located in Alpharetta.
Originally published by American Banker.