Regulators Shut Montgomery Bank & Trust in Georgia

by Robert Barba

JUL 6, 2012 6:02pm ET

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The Georgia Department of Banking and Finance closed Montgomery Bank & Trust in Ailey on Friday.

The Federal Deposit Insurance Corp. entered into an agreement with the $3 billion-asset Ameris Bank in Moultrie, Ga., which agreed to assume all of the bank's $164.4 million in deposits.

Ameris also agreed to buy $12.4 million of the bank's $173.6 million in assets. In a press release, the FDIC said most of what Ameris plans to buy is cash and cash equivalents. It said it would retain the remaining assets for later disposition.

The failure is expected to cost the Deposit Insurance Fund $75.2 million. It is the 32nd bank to fail so far in 2012. Montgomery is Ameris' 10th failed bank deal since 2009.

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IN PICTURES

Shrinking Branches: How Wells, Umpqua and Bank of West are Downsizing

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Branch transaction volumes are dropping but many banks continue to view physical facilities critical to acquiring customers, originating loans and branding businesses: The branches just need a different, lower-cost design.

Wells Fargo (WFC), Bank of the West and Umpqua (UMPQ) are among the banks scaling down branches and eliminating teller windows. Here's a photo sampling of branch concepts that do away with the need for larger real estate.

(Image: Thinkstock)

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More evidence that while federal financial regulators continue to provide corporate welfare to the Too Big To Behave Banks and turn blind eyes to nefarious activities, they are loath to provide assistance to community banks -- jeopardizing the nation's dual banking system.

Posted by jim_wells | Monday, July 09 2012 at 7:35AM ET

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