(CLAYTON, Ga.) -- The Federal Deposit Insurance Corporation said Friday that financial authorities closed Mountain Heritage Bank in Clayton, Ga. This is the 48th bank to fail this year and the 14th in Georgia, making that state the nation's leader in failed banks. Since 2008, Georgia has closed 65 banking institutions, the Atlanta Journal-Constitution reports.
The 48 banks seized so far in 2011 is still lower than that of the first have of 2010. The Wall Street Journal reports that 157 banks had failed by the end of last year -- the highest since the end of the savings and loan crisis in 1992.
All deposit accounts at Mountain Heritage Bank, with the exception of certain brokered account deposits, are being transferred to First American Bank and Trust Co. in Athens, Ga. under a purchase-and-assumption deal with the FDIC, according to The Wall Street Journal.
Before the close, Mountain Heritage reportedly had $103.7 million in assets and $89.6 million in deposits between its two branches. According to the FDIC, the bank's failure could end up costing the Deposit Insurance Fund about $41 million.
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