Bailout recipient Tifton Banking Co. was closed by regulators Friday night, marking the second time in consecutive weeks that a TARP bank has failed.
The bank, based in Tifton, Ga., received $3.8 million in taxpayer aid through the Troubled Asset Relief Program in April 2009. That investment will likely be wiped out due to the bank’s failure.
A total of three banks — two in Georgia and one in Arizona — failed Friday.
Tifton;s failure came week after regulators closed Pierce Commercial Bank, which received $6.8 million in taxpayer aid through TARP.
Tifton now becomes the sixth TARP recipient to be closed by regulators. A seventh, CIT Group Inc., went through a bankruptcy that wiped out Treasury’s $2.3 billion investment.
Tifton had been current on its quarterly dividends to the Treasury Department until August when, for the first time, it became a TARP “deadbeat” by failing to pay $51,800 owed as a condition of receiving government aid.
The bank, established in 2004, had a single Georgia office, according to FDIC records. It held $151.7 million in deposits and $160.7 million in assets. The bank was struggling at the time of its closure, having lost nearly $9.5 million in the first half of 2010, on top of a $3.3 million loss in 2009.
Friday’s largest failure was Darby Bank & Trust Co. in Vidalia, Ga., which had assets of $654.7 million and total deposits of $587.6 million. That bank had seven offices, all of which were in Georgia.
Darby had net losses of $17.9 million so far this year, and lost more than $28.6 million in 2009.
Both Tifton Banking Co. and Darby Bank & Trust Co. will be taken over by Ameris Bank of Moultrie, Ga.
The three failures combined will cost the FDIC’s deposit insurance fund an estimated $204.4 million. There have now been 146 bank failures this year, compared with 140 for all of 2009.