Regulators shut small Georgia bank; 48th in 2011

June 24, 2011 - 5:15 PM

WASHINGTON (AP) — Regulators have shut down a small bank in Georgia, boosting to 48 the number of U.S. bank failures this year as the economy struggled and bad loans piled up.

The Federal Deposit Insurance Corp. on Friday seized Mountain Heritage Bank in Clayton, Ga., with $103.7 million in assets and $89.6 million in deposits. First American Bank and Trust Co., based in Athens, Ga., agreed to assume the assets and deposits of the failed bank.

The failure of Mountain Heritage Bank is expected to cost the deposit insurance fund $41.1 million.