Three Georgia Banks Fail on Friday

ATLANTA - Three more bank failures on Friday bring the total number of bank failures in Georgia during 2010 to 21.

United Americas Bank of Atlanta, Chestatee State Bank in Dawsonville and Appalachian Community Bank of McCaysville closed on Dec. 17.

United Americas Bank's assets were assumed by State Bank and Trust Co. of Macon. United Americas had two branches, $242 million in assets and about $194 million in total deposits as of Sept. 30. Regulators estimate United Americas' failure will cost the Deposit Insurance Fund $75.8 million.

Little Rock, AK-based Bank of the Ozarks acquired Chestatee State Bank's deposits and essentially all of its assets. As of Sept. 30, Chestatee State Bank had approximately $244.4 million in total assets and $240.5 million in total deposits. Bank of the Ozarks did not pay the FDIC a premium for the deposits of Chestatee State Bank.

The FDIC and Bank of the Ozarks entered into a loss-share transaction on $195.3 million of Chestatee State Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $75.3 million.

Madisonville, TN-based Peoples Bank of East Tennessee will take over Appalachian Community Bank's deposits, except for brokered deposits and certain out-of-state certificates of deposit. Appalachian Community Bank has about $68.2 million in total assets and $76.4 million in total deposits. Peoples Bank of East Tennessee will buy $67.5 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and Peoples Bank of East Tennessee entered into a loss-share transaction on $46.4 million of Appalachian Community Bank's assets. The FDIC estimates that the cost to the DIF will be $26.0 million.

(The Atlanta Business Chronicle)