Georgia Bank is 17th to Fail in 2009The 17th bank to fail in 2009 was Freedom Bank of Georgia. The Commerce, GA-based bank was closed on Friday by the Georgia Department of Banking and Finance. FDIC was named receiver. The FDIC arranged for Northeast Georgia Bank, Lavonia, GA to assume all of the deposits of the failed bank.
The four offices of Freedom Bank of Georgia reopened today as branches of Northeast Georgia Bank. Freedom Bank of Georgia has total assets of $173 million and total deposits of $161 million. Northeast Georgia Bank also bought $167 million of the failed bank's assets at a discount of $13.65 million.
The estimated cost to the FDIC's Deposit Insurance Fund will be $36.2 million. Freedom Bank of Georgia is the second bank to fail in Georgia this year. The first bank to fail in the state in 2009 was FirstBank Financial Services in McDonough, GA on February 6.