Regulators close FirstCity Bank of Georgia

US bank regulators on Friday closed FirstCity Bank of Stockbridge, Georgia, the 18th US bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions. The Federal Deposit Insurance Corp said FirstCity Bank had $297 million in assets and $278 million in deposits as of March 18. The failure is expected to cost the FDIC deposit insurance fund about $100 million.
The FDIC has approved the payout of insured deposits and will mail checks to insured depositors on Monday. The FDIC insures up to $250,000 per account. The FDIC has been appointed as receiver. Direct deposits from the federal government, such as Social Security and Veterans payments, will be transferred to SunTrust Bank, the FDIC said.
At the time of closing, FirstCity had about $778,000 in deposits that exceeded the insurance limits. The FDIC said that estimated amount is likely to change once it gets additional information from customers. In 2008, 25 US banks were seized by officials, up from only three in 2007.