Raleigh-based First Citizens Bank has expanded its presence in Georgia by acquiring the assets of a failed community bank with eight branches.
The acquisition of the assets of Atlanta-based Capitol City Bank & Trust was announced Friday evening after the Georgia Department of Banking and Finance closed the bank and named the Federal Deposit Insurance Corp. as receiver. The public isn’t notified in advance before regulators take over a bank.
First Citizens, which was selected for the deal through a competitive bidding process, has purchased seven failed banks in deals brokered by the FDIC since July 2009.
The purchase price of the deal, which only covers certain assets and liabilities of Capitol City Bank, wasn’t disclosed. First Citizens also has the option to purchase any offices owned by Capitol City or to assume the leases on its offices.
“Our company’s stability, strength and solid capital levels have allowed us to make these types of transactions,” Chairman and CEO Frank Holding Jr. said in a prepared statement. “We assure customers of Capitol City Bank & Trust that their deposits are safe, sound and readily accessible.”
The deal demonstrates First Citizens still has an appetite for acquisitions following its merger with the similarly named First Citizens Bank and Trust, which had 175 branches in South Carolina and Georgia. That deal, which was completed last month, made First Citizens the nation’s largest family-controlled bank with 566 branches in 18 states and the District of Columbia.
Capitol City Bank & Trust is operating as a division of First Citizens, an arrangement that will continue “for the foreseeable future,” said First Citizens spokeswoman Barbara Thompson.
As of Jan. 30, Capital City has assets of $275 million, including loans and leases of $192 million, and $264 million in deposits.
In addition to the eight Capitol City branches it just acquired, First Citizens has 31 branches in Georgia.
Capitol City is the third FDIC-insured institution to fail so far this year nationwide.