Regulators have abruptly closed the doors of a Georgia-based bank in the second bank failure of the year.
The Federal Deposit Insurance Corporation (FDIC) says the Georgia Department of Banking and Finance has closed LaGrange’s Community Bank and Trust – West Georgia.
The FDIC says it has been appointed trustee and entered into an agreement with Anchor Bank of Palm Beach Gardens, which will take over all insured deposits while acquiring certain assets of the bank.
“The three branches of Community Bank and Trust – West Georgia will reopen as branches of Anchor Bank during normal business hours on Monday, May 4, 2026. Depositors of Community Bank and Trust – West Georgia will automatically become depositors of Anchor Bank. The deposits accepted by Anchor Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship.”
Anchor Bank is a Florida-based bank with $606.94 million in assets and approximately $477 million in deposits.
The FDIC did not explain why LaGrange’s Community Bank and Trust – West Georgia failed. The regulator expects the failure to cost the agency’s Deposit Insurance Fund (DIF) about $97 million. This figure will likely change over time as assets are sold.
In January, the US saw its first bank failure of 2026, after Metropolitan Capital Bank & Trust was abruptly closed by the Illinois Department of Financial and Professional Regulation (IDFPR).
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