North Georgia's Hamilton State Bank is about to expand its reach as it takes over failed First State Bank of Stockbridge.
The announcement was made by Hamilton State and the Federal Deposit Insurance Corp. on Friday night.
First State Bank's seven branches, in Stockbridge, Ellenwood, McDonough and Locust Grove, will open today as branches of Hamilton State Bank, after the FDIC entered a "purchase and assumption agreement" with the Braselton-based company.
The FDIC seized First State Bank with $536.9 million in assets and $527.5 million in deposits Friday. Its failure is expected to cost the deposit insurance fund $216.2 million.
Former depositors to First State will have their account automatically switched to Hamilton State.
The announcement of First State Bank's closure makes it the second FDIC-insured bank in the nation to fail this year, and Georgia's first.
Hamilton State Bank, which has locations in Gainesville, Oakwood and throughout North Georgia, also acquired McIntosh State Bank of Jackson in July.
In a press release, Hamilton State Bank's CEO Robert Oliver said, "We welcome our newest customers and we want to assure them that they will be served by the same friendly professionals at each of The First State Bank branches in the days to come."
With the newly acquired banks, Hamilton State now has offices in nine Georgia counties with 21 branches.