Another local bank seized
First Ga. Community reopens as United Bank
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