Neighborhood Community Bank, Newnan, GA

Neighborhood Community Bank, Newnan, GA was the 42 bank closed by the FDIC this year.

Newnan-based Neighborhood Community Bank was seized by state and federal bank regulators late Friday, the 14th bank failure in Georgia since August 2008 and the second in one day.

CharterBank, based in West Point, Ga., will assume all of Neighborhood Community’s $191 million in total deposits, and will take on $209 million of the failed bank’s assets, according to a Federal Deposit Insurance Corp. release.

Neighborhood Community’s loan and deposit customers will automatically become CharterBank customers.

The FDIC and CharterBank entered into a loss-share transaction, a method that is becoming a common vehicle for the FDIC to unload failed banks.

Under the deal, the regulator will absorb losses on as much as $171 million of the assets purchased by CharterBank. The deposit insurer stated in a release the deal will be the least costly for the FDIC’s insurance fund and will minimize disruption for loan customers.

The FDIC estimates the cost of the failure to the insurance fund will be $66.7 million.

For more information, visit the official FDIC web page.

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