Bank…..Date Failed…..Total Settlement Amount*
American Southern Bank in Kennesaw…..April 24, 2009…..$600,000
First Georgia Community Bank in Jackson…..Dec. 5, 2008…..$896,996
FirstBank Financial Services in McDonough…..Feb. 6, 2009…..$1.7 million
First National Bank in Savannah…..June 5, 2010…..$800,000
Georgian Bank in Atlanta…..Sept. 25, 2009…..$10.1 million
Integrity Bank in Alpharetta…..Aug. 29, 2008…..$9.8 million
McIntosh Commercial Bank in Carrollton…..March 26, 2010…..$85,000
Neighborhood Community Bank in Newnan…..June 26, 2009…..$1.8 million
NetBank in Alpharetta…..Sept. 28, 2007…..$100,000
RockBridge Commercial Bank in Atlanta…..Dec. 18,2009…..$700,000
The Community Bank in Loganville…..Nov. 21, 2008…..$740,000
Source: FDIC
* The total settlement figure, as well as those affecting some of the individual banks, include payments by bank directors, insurance companies, law and real estate firms.
Bank directors and officers, lawyers and insurers involved in the demise of 11 failed Georgia banks have paid the Federal Deposit Insurance Corp. $27.3 million in settlements.
The FDIC, for the first time, has gathered the settlements on one public website. The details of many of the settlements in the state had not been public knowledge previously, although some date back several years.
The settlements involve American Southern Bank in Kennesaw, First Georgia Community Bank in Jackson, FirstBank Financial Services in McDonough, First National Bank in Savannah, Georgian Bank in Atlanta, Integrity Bank in Alpharetta, McIntosh Commercial Bank in Carrollton, Neighborhood Community Bank in Newnan, NetBank in Alpharetta, RockBridge Commercial Bank in Atlanta and The Community Bank in Loganville.
More than $11 million of the settlements came from individual bank directors and officers. The rest was from insurance companies, attorneys and a real estate firm.
The FDIC has authorized a total of 888 professional liability suits against those they have determined played a role in a bank’s failure. The agency has filed 54 such suits, including 15 in Georgia.
In the settlement agreements, the professionals do not admit to liability related to the bank failures. The settlements are made to avoid the cost of litigation, and to help maximize the amount of money returned to the FDIC’s deposit insurance fund.
The FDIC has recovered $569 million in 2011 and 2012, while bank failures have cost the fund $86.9 billion since 2008.
