FIs closed: North Georgia Bank, Watkinsville, Georgia, USA
On Friday,4 February, 2011, North Georgia Bank, Watkinsville, GA was closed by the Georgia Department of Banking & 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 BankSouth, Greensboro, Georgia, to assume all of the deposits of North Georgia Bank, except certain brokered and Internet deposits.
The two branches of North Georgia Bank reopened on Saturday as branches of BankSouth. Depositors of North Georgia Bank will automatically become depositors of BankSouth.
As of 31 December, 2010, North Georgia Bank had approximately USD153.2 million in total assets and USD139.7 million in total deposits.
BankSouth will purchase all of the deposits of North Georgia Bank, except those from certain deposit brokers and those placed over the Internet. The FDIC will pay brokers directly for the amount of their funds. Customers who placed money with the deposit brokers should contact them directly for more information. Internet deposit customers will receive a cheque from the FDIC for the amount of their funds.
Bank South did not pay a premium for the deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD35.2 million.
North Georgia Bank is the thirteenth FDIC-insured institution to fail in the nation this year and the fourth in Georgia.
Download PDF version of this page