Regulators close Georgian Bank after huge losses

By Paul Donsky

The Atlanta Journal-Constitution

Regulators on Friday closed troubled Georgian Bank, which has suffered huge losses this year tied to the deteriorated real estate market.

The Atlanta-based bank, which was Georgia's sixth-largest lender, was taken over by First Citizens Bank and Trust of Columbia, S.C. First Citizens acquired all $2 billion of Georgian's deposits and entered into a loss-sharing agreement with the Federal Deposit Insurance Corp. on the failed bank's $2 billion in assets.

Georgian, founded in 2001, was one of the state's most profitable banks during the housing boom earlier this decade. But the bank ran into big problems this year, losing $36.7 million loss in the second quarter alone.

At the end of the second quarter, Georgian had a staggering $306 million in noncurrent loans, compared to $7 million the same period a year ago.

Georgian is the 24th bank in the state to be shut down since the banking crisis began in August 2008. No other state has had as many failures during that stretch.