• Three Georgia Banks Fail: Buckhead Community Bank, First Security National Bank, and Tattnall Bank
  • December 11, 2009
  • Law Firm: Alston & Bird LLP - Atlanta Office
  • On Friday, the Georgia Department of Banking and Finance  closed the Buckhead Community Bank, headquartered in Atlanta, Georgia, and First Security National Bank, headquartered in Norcross, Georgia, and the OCC closed Tattnall Bank, headquartered in Reidsville, Georgia.

    As receiver, the FDIC entered into a purchase and assumption agreement with State Bank and Trust to assume the deposits of the Buckhead Community Bank and First Security National Bank and with HeritageBank of the South to assume the deposits of Tattnall Bank.  Neither State Bank & Trust nor HeritageBank of the South paid the FDIC a premium for the deposits.  

    As of November 6, 2009, the Buckhead Community Bank had total assets of approximately $874 million and total deposits of approximately $838 million.  State Bank and Trust agreed to purchase essentially all of the Buckhead Community Bank’s assets.  The FDIC and State Bank & Trust Company entered into a loss-share transaction on approximately $692 million of the failed bank’s assets.  The FDIC estimates the cost to the Deposit Insurance Fund (“DIF”) will be $241.4 million.

    As of September 30, 2009, First Security National Bank had total assets of approximately $128 million and total deposits of approximately $123 million.  State Bank and Trust also agreed to purchase approximately $118 million of First Security National Bank’s assets, with the FDIC retaining the remaining assets for later disposition.  The FDIC and State Bank & Trust Company entered into a loss-share transaction on approximately $82.4 million of the failed bank’s assets.  The FDIC estimates that the cost to the DIF will be $30.1 million. 

    As of September 30, 2009, Tattnall Bank had total assets of $49.6 million and total deposits of approximately $47.3 million.  HeritageBank of the South agreed to purchase $48.5 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition.  The FDIC estimates that the cost to the DIF will be $13.9 million.  

    These failures mark the 125th, 126th and 127th in the nation this year and the 22nd, 23rd and 24th in Georgia.