Georgian Bank is the Latest to Fall
Fridays are when we bid adieu to terminally ill banks. Today it’s Atlanta’s Georgian Bank, which is being closed by state banking regulators. South Carolina’s First Citizens Bank and Trust will acquire most of the $2 billion-asset company’s assets, which include five branches and roughly $2 billion in deposits. Under the loss-sharing agreement with First Citizens, the FDIC is forking out $892 million from its deposit insurance fund to cover Georgian. That’s a lot. And in general, taking smaller banks into receivership costs the FDIC proportionally more than disposing larger institutions. For instance, the demise of $25 billion Colonial Bancgroup, whose assets were acquired in August by BB&T, cost the FDIC deposit fund $2.8 billion, or about 11 percent of…
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