- Morris Bank Assumes All of the Deposits of the Gordon Bank
- October 27, 2010
- Law Firm: Alston Bird LLP - Atlanta Office
On Friday, the Georgia Department of Banking and Finance closed The Gordon Bank, headquartered in Gordon, Georgia, and appointed the FDIC as receiver. As receiver the FDIC entered into a purchase and assumption agreement with Morris Bank, headquartered in Dublin, Georgia, to assume all of the deposits of the failed bank.
As of June 30, 2010, The Gordon Bank had approximately $29.4 million in total assets and $26.7 million in total deposits. Morris Bank paid the FDIC a premium of 0.05 percent for the deposits of The Gordon Bank. In addition, Morris Bank agreed to purchase approximately $11.5 million of The Gordon Bank's assets, consisting of cash and cash equivalents. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $9.0 million. The Gordon Bank is the 135th FDIC-insured institution to fail in the nation this year, and the 15th in Georgia.