Two small Georgia banks were closed by regulators Friday, including one with offices in Fulton and Forsyth counties.
American Trust Bank of Roswell, and North Georgia Bank of Watkinsville, were closed by state regulators and sold to other institutions by the Federal Deposit Insurance Corp. Four Georgia banks have failed so far in 2011.
American Trust was acquired by Renasant Bank of Tupelo, Miss.
North Georgia Bank -- which is not connected with Bank of North Georgia, a Synovus Financial affiliate -- was sold to BankSouth of Greensboro.
Fifty-five banks have now failed in Georgia since mid-2008, more than in any other state. Both banks closed Friday were founded in the early 2000s and rode the boom of Georgia’s real estate market, only to suffer fatal wounds when it burst.
American Trust’s offices in Roswell, Alpharetta and Cumming will reopen on Monday as Renasant branches. American Trust had $238.2 million in total assets and $222.2 million in total deposits, the FDIC said.
Renasant acquired all deposits and $147.4 million of American Trust's assets in a loss-share deal with the FDIC. The regulator will dispose of the remaining assets, mostly bad loans and foreclosed real estate. American Trust’s collapse will cost the FDIC’s insurance fund $71.5 million.
It is the second failed bank acquisition for Renasant in Georgia following its July 2010 acquisition of Jasper-based Crescent Bank & Trust.
North Georgia Bank branches in Watkinsville and Athens will reopen Saturday as offices of BankSouth.
North Georgia had $153.2 million in total assets and $139.7 million in deposits as of December. BankSouth agreed to assume virtually all its assets in a loss-share transaction with the FDIC.
North Georgia’s failure will cost the FDIC’s insurance fund $35.2 million.
Depositors of the failed banks will immediately become customers of the acquiring institutions.
