FirstCity Bank, a bank with nearly $300 million in assets, was shut down by federal regulators on Friday. In 2009 alone, this is the eighteenth bank to fail in the United States.
Located in the state of Georgia, FirstCity Bank is the second Georgia bank to fail in the last month. Freedom Bank of Georgia was shut down earlier in March.
The FDIC will now control the fate of FirstCity Bank. For those who qualified for FDIC insurance, their checks will be sent in the following week. Any federal deposits formerly being sent to FirstCity Bank will now by sent to SunTrust Bank.
Like many other the other bank failures, FirstCity Bank was doomed by loan defaults brought out by the economic troubles throughout the nation. In 2007, only three bank failures occurred in the United States. In 2008, that number rose to 25. The 2009 figure is already at 18 and many experts expect that number to at least double before the end of the year.