Regulators close LaGrange's Frontier Bank

WASHINGTON (AP) – Regulators have closed a small bank in Georgia, bringing the total number of U.S. bank closures to four for this year after 51 closures in 2012. The Federal Deposit Insurance Corp. said that state regulators closed Frontier Bank of LaGrange, Ga., on Friday. It has nine branches in Georgia and Alabama, and about $258.8 million in assets and $224.1 million in deposits. HeritageBank of the South has agreed to assume all of the deposits of Frontier Bank and purchase essentially all its assets. HeritageBank of the South is a unit of Heritage Financial Group Inc. based in Albany, Ga. Frontier's closure is the first bank failure in the state of Georgia this year.
U.S. bank closures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession. In 2007, just three banks went under. That number jumped to 25 in 2008, after the financial meltdown. It ballooned to 140 in 2009 and regulators seized 157 banks in 2010. The pace declined to 92 in 2011 and 51 last year. The sharply reduced pace of closings shows sustained improvement. An average of only four or five banks close annually in a strong economy The FDIC said it estimates Frontier Bank's closure will cost the deposit insurance fund $21.8 million. Bank failures cost the deposit insurance fund an estimated $88 billion from 2008 through 2011. The FDIC expects bank failures from 2012 through 2016 to cost $10 billion. --- For more information, visit the FDIC's website at: http://www.fdic.gov/bank/individual/failed/frontier-ga.html © 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


More Local

10 Years Later

Couple, bridesmaid recall how Katrina affected wedding

When Germond and Jillian Walton of Newnan were preparing for their wedding on Sept. 3, 2005, they never imaged how much Hurricane Katrina wo ... Read More


Gas station clerk struck during robbery

A clerk was struck by an assailant as three men made off with almost $1,300 after robbing customers and emptying the cash register, accordin ... Read More


Downtown kiosks to be updated

The Newnan Downtown Development Authority is updating the kiosk directories at the historic courthouse. The kiosks offer information on the ... Read More


Coweta students improve ACT scores

The average overall ACT score for Coweta County schools has increased, according to the 2015 ACT Report. The ACT is a national college admis ... Read More


Arnco, Sargent sewer upgrade grant approved

The Coweta County Water and Sewerage Authority has been awarded a $500,000 grant to upgrade the aged sewerage system in the Arnco and Sargen ... Read More

Newnan’s Coggin not seeking seat

Challengers qualify in Senoia, Turin, Sharpsburg

There will be contested city elections in Senoia, Turin and Sharpsburg this fall. The general election will be held Nov. 3. The voter regist ... Read More