First Citizens acquires failed bank

First Citizens Bancorporation of South Carolina is the Palmetto State’s second-largest bank company, but it’s making a run for the top spot.

Friday, Columbia-based First Citizens assumed the deposits of $2 billion Georgian Bank, following the latter’s closure by the Federal Deposit Insurance Corp.

Atlanta-based Georgian Bank’s five branches will reopen Monday as branches of First Citizens, a closely held company with more than $7 billion in assets.

The deal gives First Citizens about $9 billion in assets and moves it considerably closer to $12.6 billion South Financial Group of Greenville.

The FDIC and First Citizens Bank entered into a loss-share transaction on approximately $2 billion of Georgian Bank’s assets, according to information released by the FDIC.

First Citizens will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector, the FDIC announced.

The bank failure is the 19th in Georgia this year – the most of any state – and the 95th nationwide.