Regulators Seize Year’s 14th Failed Georgia Bank

State and federal regulators shut down ""Mountain Heritage Bank"":http://www.mountainheritagebank.com/ in Clayton, Georgia, late Friday. It's the 14th FDIC-insured financial institution in the state to be closed this year.

So far in 2011, 48 insured banks have been shuttered. At this time last year, the tally stood at 86.
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Mountain Heritage, which was founded in 2003, fell victim to the real estate downturn. According to the _Atlanta Journal-Constitution_, most of the bank's losses were on loans for construction of retirement homes and second homes.

Mountain Heritage had two branch locations, with $89.6 million in deposits and assets totaling $103.7 million. In an FDIC-assisted transaction, ""First American Bank and Trust Company"":http://www.fabathens.com of Athens, Georgia, agreed to assume all of the failed bank's deposits and purchase all of its assets.

The FDIC and First American Bank and Trust Company entered into a loss-share transaction on $69.2 million of Mountain Heritage Bank's assets.

The Georgia bank's failure is expected to cost the FDIC an estimated $41.1 million.