WASHINGTON - A bank failure in Georgia and then another in Washington state late Friday were estimated to cost the Federal Deposit Insurance Corp. nearly $25 million.
The Bank of Georgia in Peachtree City, Ga., with roughly $294.2 million in assets, was seized by the Georgia Department of Banking and Finance. The Office of the Comptroller of the Currency later closed the $4.9 million-asset Hometown National Bank in Longview, Wash. The failures - the first pair of banks to fail in one evening since two institutions were closed in June 2014 - brought this year's total to eight closures.
The FDIC announced a deal to sell all of The Bank of Georgia's $280.7 million in deposits to Fidelity Bank in Atlanta, at a 3.05% premium. The acquirer also agreed to buy $255.3 million of Bank of Georgia's assets. The FDIC will hold the rest of the assets in order to sell them at a later date. The failure is estimated to cost the Deposit Insurance Fund $23.2 million.
Meanwhile, the agency said it would sell all of Hometown National's $4.7 million in deposits to Twin City Bank, also in Longview. The acquirer also agreed to buy $3.8 million of Hometown National Bank's assets. The FDIC will hold the remaining assets for later disposition. The failure is estimated to cost the Deposit Insurance Fund $1.6 million. It was the first bank to close in the state since January 2013.