A small bank based in Peachtree City, southwest of Atlanta, failed Friday, becoming the second community bank in Georgia to be closed in 2015.
The Bank of Georgia was seized by state regulators and sold by the Federal Deposit Insurance Corp. to Atlanta-based Fidelity Bank. The failed bank’s seven branches will reopen as Fidelity locations during their next scheduled business day.
Depositors will automatically become clients of Fidelity and may continue to use checks and debit cards as usual, the FDIC said in a news release.
Bank of Georgia had about $280.7 million in deposits and $294.2 million in assets at the end of June, the FDIC said. Fidelity paid a 3.05 percent premium to acquire the failed bank’s deposits and will acquire most of the bank’s assets, the release said. The failure is expected to cost the FDIC’s insurance fund, a reserve that backstops deposits, $23.2 million.
Bank of Georgia is the state’s 90th failure since mid-2008, but the pace of failures has plummeted amid the prolonged recovery.
The bank was founded in 2000 in Fayetteville before moving to Peachtree City. The bank, like many in Georgia that failed before it, was heavily geared toward real estate loans.
About the Author
