Friday, September 25, 2009
News FDIC: Georgian Bank buys the farm
Posted by Steve Huff on Fri, Sep 25, 2009 at 9:27 PM
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Sorta-kinda optimistic Bloomberg Report from June about Georgia bank failures
And another bank bites the dust. The following comes from the FDIC, regarding the failure today of Atlanta-based Georgian Bank:
Georgian Bank, Atlanta, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, to assume all of the deposits of Georgian Bank.
The FDIC will take a $892 million hit on its Deposit Insurance Fund (DIF). For those of you keeping score (and piling perishables in your bomb shelter), this is failure number 19 for 2009. The Atlanta Business Journal reports that it is also the "largest bank failure in the Peach State since Security Bank Corp. of Macon failed July 24."
The Journal clues us in as to why Georgian, once an Atlanta success story, has fallen into the charnel pit that is banking in Georgia in 2009 - 620 percent of Georgian's "loan concentration" was in real estate.
Georgian Bank's website was bright and cheery just a week ago, bragging about "more entrepreneurs and high-net-worth individuals" coming to the bank for "a much-needed different and better banking experience." Now the site is stripped bare with a notice from the FDIC informing users about the closure and directing them to First Citizens Bank and Trust.
There's probably some poetic metaphor there, comparing the denuded bank website with suburbs full of unsold, never-lived-in, kudzu-smothered North Georgia McMansions, but buying bulk lots of Spam from Sam's and digging another room for the bomb shelter has sapped my creativity.
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