Regulators close two more Georgia banks

First Choice had $308.5 million in assets and $310 million in deposits as of December. Park Avenue had assets of $953.3 million and deposits of $827.7 million. Ozarks agreed to purchase most of both banks' assets and all deposits in a loss-share agreement with the FDIC.

The failures combined are estimated to cost the FDIC’s insurance fund, the backstop that protects depositors, $398.5 million.

Park Avenue had branches in South Georgia, one in Florida and a few others elsewhere, including Stockbridge and Athens. The bank was founded in Valdosta in the 1950s.

A buying spree in the early 2000s saw the bank acquire rivals in metro Atlanta, South Georgia and Ocala, Fla. The moves sparked growth but ultimately proved fatal when the economy turned. The bank found much of its pain in soured North Georgia and Florida real estate loans.

Park Avenue lost $43.7 million in 2010, according to FDIC data.

Publicly traded Park Avenue sought to fix its condition over the past two years, selling off branches to an Albany bank and unsuccessfully trying to raise about $80 million. In December, regulators ordered the bank to sell itself or raise cash within 90 days.

The bank this month was threatened with delisting from the NASDAQ stock exchange.

First Choice, which had seven branches on the Southside, has roots dating back to the late 1800s.

There were once two banks called First Choice, but the institutions merged in 2010 after a regulatory rebuke that called for improvements in management and faulty operations. The bank, like many struggling institutions in Georgia, was also criticized for too much real estate lending.

First Choice lost $42.4 million in 2010, according to FDIC data.