Omni National Bank, Atlanta, Georgia

The 21st “official” bank implosion of 2009 was centered on Georgia, yet again (Georgia must be on the FDIC’s mind, for sure), as Omni National Bank stepped up to the plate and was knocked down.

Bloomberg has details on the bank’s implosion:

Omni National, with $980 million in assets, was shut by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. was named receiver, the OCC said today in a statement. The Federal Reserve on March 17 ordered the bank to bolster its capital and make improvements in accounting controls within 30 days.

“The bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” the OCC said. The losses “depleted most of its capital” and there was no “reasonable prospect” the levels would rise without government action.

…

The failed bank had six branches in Georgia, Illinois, Florida and Texas, and two loan offices in Alabama and Pennsylvania, the OCC said. The lender opened in 2000. The FDIC, which arranges to sell the deposits and assets of failed banks, didn’t identify a buyer for Omni National, which is controlled by Omni Financial Services Inc. of Atlanta.

SunTrust is taking over Omni’s accounts.

No word on the hit to the “Insurance Fund” expected by the FDIC (as of last announcement, the fund was down to under $19B, from well over twice that last year).

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