The Georgia Department of Banking and Finance closed the $21.4 million-asset Woodbury Banking Co. on Friday, marking this year's fourth bank failure.
As receiver of the failed bank, based in Woodbury, Ga., the Federal Deposit Insurance Corp. entered into a purchase and assumption agreement with United Bank in Zebulon, Ga. The acquirer will assume operations at Woodbury Banking's sole branch.
United Bank has agreed to take over all of Woodbury Bank's $21.1 million in deposits and to acquire approximately $17.8 million of its assets.
Woodbury Banking's branch will reopen during normal business hours as a branch of United Bank. Eventually, customers will have their Woodbury Banking Co. accounts processed at United Bank branches.
The failure is estimated to cost the FDIC $5.2 million.
For United Bank, the acquisition is the latest in a string of purchases of small neighboring banks. "The community of Woodbury is a close neighbor to several of our other bank markets," Jim Edwards, United Bank's CEO, said in a press release. "We look forward to serving the needs of our new customers, and appreciate the opportunity to expand into this great Georgia town."
In 2014, United Bank agreed to acquire Monroe County Bank, a two-branch institution in Forsyth, Ga. In 2010, United Bank acquired the failed First National Bank of Barnseville, which also had two branches.
The closing of Woodbury Banking was the first failure of a Georgia bank in 2016. The last institution to close in the state was the Bank of Georgia in Peachtree City, which failed in October.