The Community Bank, Loganville, Ga., has been closed by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corp. (FDIC) has been named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of Essex, Tappahannock, Va., to assume all of the deposits of The Community Bank.
The Community Bank's four branches have reopened as Bank of Essex. Depositors of the failed bank will automatically become depositors of Bank of Essex, and deposits will continue to be insured by the FDIC.
As of Oct. 17, The Community Bank had total assets of $681 million and total deposits of $611.4 million, according to the FDIC. Bank of Essex has purchased approximately $84.4 million of The Community Bank's assets, and paid the FDIC a premium of $3.2 million for the right to assume the failed bank's deposits. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to its Deposit Insurance Fund will be between $200 million and $240 million. The Community Bank is the 20th FDIC-insured institution to be closed nationwide, and the third in Georgia this year.