June 25, 2010 – Troubled First National Bank, Savannah, Georgia, was closed today by the Comptroller of the Currency, which appointed the FDIC as receiver. Failed First National was acquired by The Savannah Bank, N.A., Savannah, GA, in a purchase and assumption agreement with the FDIC. All of First National’s deposits and “some” of the assets will be assumed by Savannah Bank, N.A.
The FDIC did not disclose exactly what amount of assets would be purchased by Savannah Bank, N.A., but noted that the FDIC will retain “most” of the assets of failed First National for later disposition. In a State ravaged by banking failures and declining property markets, First National saw a large percentage of its loan portfolio default. First National’s troubled asset ratio was a sky high 462 compared to a national average of 14.5. The Savannah Bank has somewhat high troubled asset ratio of 29.3. Most of the banks that are closed by regulators have a troubled asset ratio of 100 or greater.
At the time of closing First National Bank had a total of $252.5 million in total assets and $231.9 million in deposits. Savannah Bank N.A. agreed to pay the FDIC a premium of .11 percent on the assumption of First National’s deposits. At March 31, Savannah Bank N.A. had approximately $768 million in assets.
Customers will see no disruption to banking services over the weekend and all four branches of First National will reopen on Monday as branches of Savannah Bank, N.A..
Georgia has now had 9 banking failures this year, the third largest number in the nation, trailing only Florida with 14 banking failures and Illinois with 12.
First National Bank is the nation’s 85th banking failure this year. The cost to the FDIC Deposit Insurance Fund for closing First National is estimated at $68.9 million. The last banking failure in Georgia occurred on May 14, 2010.