First National Bank of Savannah fails

By Péralte C. Paul

The Atlanta Journal-Constitution

The First National Bank of Savannah billed itself as the solid, dependable bank.

Its tagline: "We're always here -- like the sunrise over Savannah."

The sun set on First National, however: On Friday federal regulators seized the institution, making it the ninth Georgia-based bank to fail this year and the 39th in the state to be seized since 2008.

The Federal Deposit Insurance Corp. said Savannah Bank, which has more than $1 billion in total assets, will assume First National's deposits for a premium of 0.11 percent and will purchase some of its assets.

First National had $252.5 million in total assets and $231.9 million in deposits at the end of March.

The FDIC estimates the cost to its Deposit Insurance Fund will be $68.9 million.

First National's main problem was liquidity, said Walt Moeling, a longtime banking attorney with Bryan Cave.

"The Savannah market has generally been stronger than others," he said, but the bank's liquidity issues were its biggest vulnerability, which only became magnified in a down cycle for banks in general.

First National's failure is the 85th nationwide so far this year. The last Georgia bank to fail was Satilla Community Bank, based in St. Marys, which regulators seized May 14.