Georgian Bank, located in Atlanta, was shut-down by federal regulators on Friday, marking the 95th bank failure in 2009.
Georgian Bank was founded in 2001 and was considered to be one of the fastest growing banks in the state. Before its failure, Georgian Bank was the 5th largest bank in the state of Georgia. Unfortunately, Georgian Bank was plagued by non-performing real estate loans and was not able to act quickly enough to shore up its balance sheet. Since the bank was relatively small nationwide, it didn’t have the ability to tap into capital sources to save the company from demise.
The bank had nearly $2 billion in assets and $2 billion in deposits as of July 24th, according to the Federal Deposit Insurance Corporation. The FDIC estimated that the cost of the bank failure to the FDIC’s dwindling deposit insurance fund will be $892 million.
First Citizens Bank and Trust Company Inc, based out of Columbia, S.C., has agreed to assume nearly all of the bank’s failed deposits.
