On May 1, the Georgia Department of Banking and Finance announced that it took possession of a state-chartered bank in LaGrange, Georgia, citing its authority under O.C.G.A. § 7-1-150(a), and that the FDIC was appointed receiver. The FDIC subsequently announced that it entered into an agreement with another insured depository institution to assume substantially all of the failed bank’s insured deposits. The bank’s three branches reopened under the assuming institution, and depositors automatically became customers of the assuming bank with access to their insured funds. The FDIC stated that, as of December 31, 2025, the bank held approximately $288 million in total assets and $268 million in total deposits, of which roughly $27 million exceeded FDIC insurance limits. The agency estimated the cost to the Deposit Insurance Fund at $97 million. This closure marks the second failure of an FDIC-insured institution in 2026, following the closure of an Illinois bank in January (covered by InfoBytes here).