It’s been a while, but here we go again.
From the FDIC website tonight:
Anchor Bank Assumes Insured Deposits of Community Bank and Trust – West Georgia, LaGrange, Georgia
May 1, 2026
WASHINGTON—Community Bank and Trust – West Georgia of LaGrange, Georgia was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC entered into an agreement with Anchor Bank of Palm Beach Gardens, Florida to assume substantially all insured deposits and acquire certain assets of Community Bank and Trust – West Georgia.
The three branches of Community Bank and Trust – West Georgia will reopen as branches of Anchor Bank during its 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 assumed by Anchor Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship.
Customers of Community Bank and Trust – West Georgia will have immediate access to their insured deposits. Over the weekend, they can access their deposits by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of December 31, 2025, Community Bank and Trust – West Georgia reported total assets of $288 million and total deposits of $268 million. Approximately $27 million of the deposits exceeded FDIC insurance limits; this amount is likely to change once the FDIC obtains additional information. The FDIC may make payments to uninsured depositors (i.e. provide an “advanced dividend”) at a later date based on the recoveries from the sale of the retained failed bank’s assets and will provide additional information as it becomes available.
Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-866-314-1744 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m., Eastern Time (ET); on Saturday from 9:00 a.m. to 6:00 p.m., ET; on Sunday from noon to 4:00 p.m., ET; and from Monday onward, from 9:00 a.m. to 5:00 p.m., ET.
Any customers with questions may call the toll-free number above or visit the FDIC’s website. Beginning Monday, depositors of Community Bank & Trust – West Georgia may also visit the FDIC’s webpage “Is My Account Fully Insured?” to review the insurance coverage on their accounts.
The FDIC estimates that the failure will cost its Deposit Insurance Fund approximately $97 million. The estimate is expected to change over time as retained assets are sold.
Not a small hit, not a big one.
Banking Dive revealed the reason which generated this failure in a story last week:
The $288 million-asset bank holding company had embarked on a growth strategy that involved purchasing and originating U.S. Department of Agriculture and Small Business Administration loans through nonbanks, which demanded “significant financial and managerial resources and support” from Community Bankshares, the Fed said in the April 14 order.
In other words, as warned on these pages, via social media, and numerous other outlets, the NDFI problem has and will impact the community and regional banks eventually. As the defaults pile up, as the insane risk profile increases, and while the Federal Reserve turns a blind eye on its regulatory oversight role, it is purely up to the FDIC to enforce and protect the depositors.
The problem is what happens when politics intervene to block the ability to prevent massive fraud and malfeasance in the financial system. Not immediately, but soon, as equities finally peak and roll over, look for more of these smaller institutions to literally hit the wall and fail.
