An­other lo­cal bank seized

First Ga. Com­mu­nity re­opens as United Bank

The Covington News - - Front page - By Rachel Oswald

First Ge­or­gia Com­mu­nity Bank be­came the sec­ond lo­cal bank to fail in less than a month when the Fed­eral De­posit In­sur­ance Cor­po­ra­tion took con­trol of the bank on Fri­day.

The bank has since been ac­quired by United Bank of Ze­bu­lon, which has as­sumed all of the de­posits of First Ge­or­gia. The Cov­ing­ton branch of the bank, lo­cated on U.S. High­way 278 in the Kroger shop­ping plaza, re­opened on Satur­day as United Bank.

De­pos­i­tors of First Ge­or­gia au­to­mat­i­cally be­came de­pos­i­tors of United Bank. Checks drawn on First Ge­or­gia will con­tinue to be pro­cessed. Loan cus­tomers should con­tinue to make their pay­ments as usual.

The last bank to be closed in Ge­or­gia was The Com­mu­nity Bank of Lo­ganville on Nov. 21. The Com­mu­nity Bank, which had a branch in Cov­ing­ton, has since been taken over by The Bank of Es­sex.

The FDIC or­ches­trated the pur­chase and as­sump­tion agree­ment with United Bank, which ac­quired First Ge­or­gia’s de­posits for a .811 per­cent pre­mium. As of Nov. 7, First Ge­or­gia had $197.4 mil­lion in de­posits.

United Bank also pur­chased ap­prox­i­mately $60.6 mil­lion of First Ge­or­gia’s $237.5 mil­lion worth of as­sets. The FDIC will re­tain the re­main­ing as­sets for the time be­ing.

“We just bought the de­posits. We did not buy any of the loans,” said United Bank CEO Jim Ed­wards, adding that the bank will be go­ing over First Ge­or­gia’s loans to de­cide which ones the bank will ac­quire and which ones the bank will leave to the FDIC.

LaJuan W il­liams-Dick­er­son, spokesper­son for the FDIC, said the FDIC stepped in to man­age the sale of the bank af­ter be­ing asked to by The Ge­or­gia Depart­ment of Bank­ing and

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.