The Georgia Department of Banking and Finance shut down Community Bank and Trust – West Georgia this weekend.
The bank, which opened in December 1984, is the second bank this year to fail. Chicago-based Metropolitan Capital Bank & Trust was closed on Jan. 30
The Federal Deposit Insurance Corporation (FDIC) was named as receiver of the LaGrange, Georgia-based institution and entered into an agreement with Anchor Bank of Palm Beach Gardens, Florida, to assume substantially all insured deposits and acquire certain assets of the failed bank, including its three branches.
As of Dec. 31, 2025, Community Bank and Trust – West Georgia reported total assets of $288 million and total deposits of $268 million. Approximately $27 million of the deposits exceeded FDIC insurance limits, although this amount is likely to change once the FDIC obtains additional information. The FDIC estimates that the failure will cost its Deposit Insurance Fund approximately $97 million.
FDIC only pays out when there is demand, such as a failure. Why “fail” the
bank when it had more money than required? Couldn’t there have been a
better solution, other than blowing $97M?