FIs closed: Citizens Bank, Effingham, Springfield, Georgia, USA
On Friday, 18 February, 2011, Citizens Bank of Effingham, Springfield, Georgia was closed by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with HeritageBank of the South, Albany, Georgia, to assume all of the deposits of Citizens Bank of Effingham.
The four branches of Citizens Bank of Effingham reopened on Saturday as branches of HeritageBank of the South.
As of 31 December, 2010, Citizens Bank of Effingham had approximately USD214.3 million in total assets and USD206.5 million in total deposits.
HeritageBank of the South will pay the FDIC a premium of 1.0 percent to assume all of the deposits of Citizens Bank of Effingham.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD59.4 million.
Citizens Bank of Effingham is the twentieth FDIC-insured institution to fail in the USA this year and the sixth in Georgia.
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