Two more Georgia banks fail, boosting total to 32

The banks, First National Bank of Georgia in Carrollton and Community Bank and Trust in Cornelia, had large real-estate related losses.

First National was taken over by a newly chartered Georgia institution, Community & Southern Bank. Community Bank & Trust was taken over by SCBT, based  in Orangeburg, S.C.

Both banks will reopen this weekend under their new names.

Community & Southern purchased all of First National’s deposits, nearly $758 million, paying a premium of 1.25 percent to the Federal Deposit Insurance Corp. The new bank also agreed to essentially purchase First National’s $833 million in assets, according to the FDIC.

A news release from the FDIC announcing the transaction did not include any additional information about the new bank or its owners.

First National lost $53.6 million through the first three quarters of the year and had another $127 million in delinquent loans on its books, most of which it had given up hope of collecting. The bank’s equity tumbled over the past year from $93 million to just $14 million as losses mounted.

The FDIC estimated the failure will cost its insurance fund $260.4 million.

SCBT acquired Community Bank & Trust's $1.1 billion in deposits and $1.2 billion in assets. It did not pay a premium for the deposits.

Community Bank & Trust lost $64.5 million through the first three quarters of 2009 and had $211 million in troubled loans on its books through September, FDIC records show. Its failure will cost the FDIC's insurance fund $354.5 million.

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