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Two Georgia Banks Shuttered

State and federal regulators on Friday closed the doors on two Georgia lenders, bringing the number of names on the ""FDIC's failed-bank list"":http://www.fdic.gov/bank/individual/failed/banklist.html to 70 for the 2011 calendar year.

The state of Georgia's banking industry has been especially hard-hit by the real estate and economic downturns. It's been home to the most bank failures since the crisis set in,


with 19 institutional closings over the last eight-and-a-half months.

""Patriot Bank of Georgia"":http://www.patriotbankga.com/ in Cumming and ""CreekSide Bank"":http://www.creeksidebank.com/ in Woodstock are the latest casualties. Both failed lenders were taken over by ""Georgia Commerce Bank"":http://www.gacommercebank.com headquartered in Atlanta.

Patriot Bank of Georgia had one branch, $111.2 million in deposits, and $150.8 million in assets.

CreekSide Bank operated out of two branch locations, with deposits totaling $96.6 million and $102.3 million in assets.

The FDIC and Georgia Commerce Bank entered into loss-share transactions on the failed banks' assets. The loss-share agreement for Patriot Bank of Georgia covers $136.2 million of its assets, and the loss-share transaction for CreekSide Bank covers $69.2 million of the acquired assets.

The FDIC estimates that the cost to its deposit insurance fund for Patriot Bank of Georgia will be $44.4 million and for CreekSide Bank, $27.3 million.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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