Georgia state regulators on Friday closed the $272 million-asset Capitol City Bank & Trust Co., in Atlanta, the third institution to fail this year.

The failed bank's operations, which include eight branches, were sold to First-Citizens Bank & Trust Co. in Raleigh, N.C. The acquirer agreed to assume all of Capitol City's $262.7 million in deposits, and will purchase essentially all of the failed bank's assets. The bank will reopen during normal business hours as Capitol City Bank & Trust, a division of First-Citizens Bank & Trust Co.

The failure is estimated to cost the Federal Deposit Insurance Corp. $88.9 million. Capitol City Bank & Trust is the first Georgia institution to fail since Eastside Commercial Bank, in Conyers, was closed in July.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.