Georgian Bank of Atlanta Fails; 95th of 2009

U.S. bank regulators closed Georgian Bank of Atlanta, Georgia, on Friday, the 95th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.

The Federal Deposit Insurance Corp [FDIC] said Georgian Bank had, as of July 24, 2009, $2 billion in assets and approx. $2 billion in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $892 million.

First Citizens Bank and Trust Company, Inc. of Columbia, South Carolina, agreed to assume all of the deposits of Georgian Bank of Atlanta, whose five branches will reopen on Monday, the regulator said.

Georgian Bank is the nineteenth bank to fail in Georgia. The last FDIC-insured institution closed in the state was First Coweta, Newnan, on August 21, 2009.

The FDIC insures deposits at the nation’s 8,195 banks and savings associations.

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