A Georgia bank found its way to the Mortgage Graveyard and became the third federally insured casualty this year.
It was not a good week for Oglethorpe Bank.
The Brunswick, Ga., institution was closed down by the Georgia Department of Banking and Finance.
The seven-year-old bank had just 37 employees. It owned $70 million in residential loans secured by one- to four-family units. In addition, commercial mortgage holdings were $50 million, and construction-and-land-development assets were $29 million.
Bank of the Ozarks was named the winning bidder of the failed bank by the FDIC.
The deal calls for Bank of the Ozarks to acquire all of Oglethorpe’s $231 million in total assets as of Sept. 30. Bank of the Ozarks negotiated the FDIC’s participation in losses on $174 million of the assets.
Bank of the Ozarks was able to pick up Oglethorpe’s $213 million in deposits with no premium paid.
Estimated losses to the FDIC’s Deposit Insurance Fund are $80 million.
Oglethorpe was the third FDIC-insured bank failure so far during 2011. It was the fourth mortgage-related closing or failure tracked this year by MortgageDaily.com.
