Another weekend in Georgia brought yet another bank failure for the state. Macon-based Security Bank, the state's fourth largest lender, was shut-down Friday. On Saturday, the 20 branches of Security across middle and north Georgia re-opened under the name State Bank and Trust.
Georgia is now home to a quarter of all bank failures nationwide with 16--most in the country.
State Bank and Trust of Pinehurst assumed all deposits and agreed to share losses with the FDIC on many of the bank’s assets. Branches of the former Security re-opened Saturday under the State Bank and Trust banner.
Pinehurst is one of the smallest lenders in the state. However, it is controlled by three veteran Georgia bankers, including the former CEO of Flag Financial, Joe Evans.
Security Bank lost more than $200-million in the last five quarters and had been placed under federal regulatory oversight. The bank suffered massive losses after moving aggressively into the Atlanta real estate market. The FDIC estimates Security’s failure will cost them more than $800-million dollars. The new bank will be headquartered in Macon.
Contributors: Emily Green and Edgar Treiguts.