From the FDIC yesterday:
Frontier Bank, LaGrange, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with HeritageBank of the South, Albany, Georgia, to assume all of the deposits of Frontier Bank.
The nine branches of Frontier Bank will reopen during their normal business hours beginning Saturday as branches of HeritageBank of the South. Depositors of Frontier Bank will automatically become depositors of HeritageBank of the South. [...]
As of December 31, 2012, Frontier Bank had approximately $258.8 million in total assets and $224.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, HeritageBank of the South agreed to purchase essentially all of the assets.[...]
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $51.6 million. Compared to other alternatives, HeritageBank of the South’s acquisition was the least costly resolution for the FDIC’s DIF. Frontier Bank is the fourth FDIC-insured institution to fail in the nation this year, and the first in Georgia. The last FDIC-insured institution closed in the state was Hometown Community Bank, Braselton, on November 16, 2012.
In a perfect world, there would have been some energy expended during the current legislative session to examine how state banking regulations contributed to Georgia leading the nation in bank failures in recent years.
Good news: just four banks have failed nationwide so far in 2013. That means the vast majority of banks now under heightened regulator scrutiny are going to weather the crisis.
As Calculated Risk not so drily notes, “it took until March for a bank to fail in Georgia – the economy must be improving!”