Regulators closed only one bank this week, but with $2 billion in assets, it ranked among the 10 biggest failures of the year.
The Georgia Department of Banking and Finance seized Georgian Bank, of Atlanta, and appointed the Federal Deposit Insurance Corp. as receiver. The FDIC arranged for First Citizens Bank and Trust Co. of Columbia, S.C., to assume the failed bank's five branches, its deposits and most of its assets.
Georgian Bank had roughly $2 billion in deposits and $2 billion in assets. According to its web site, it catered to entrepreneurs, business owners and high-net worth individuals.
The bank replaced its chairman and chief executive in July amid mounting loan losses, and had been ordered by the FDIC to significantly improve its capital position.
Georgian Bank was the 95th bank to collapse this year, compared with 25 for all of 2008.
The FDIC and First Citizens entered into a loss-sharing arrangement in which the FDIC will absorb a big chunk of any losses on Georgian Bank's loan portfolio or other asset pools.
The FDIC estimated that the bank failure would cost its insurance fund around $892 million.
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