CARROLTON, GEORGIA (BNO NEWS) — Federal regulators on Friday closed the First National Bank of Georgia in Carrolton, Georgia marking the tenth U.S. bank failure of 2010 following an economic turbulent year that saw more than one hundred U.S. banks fail.

The First National Bank of Georgia was closed by the Office of the Comptroller of the Currency after its regular closing time on Friday. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver following its closure, who immediately entered into a purchase and assumption agreement with the Georgia-based Community & Southern Bank to assume all of the failed bank’s deposits.

Most, if not all customers, should see no or little service disruptions despite the closure of the institution. On Saturday, all 11 branches of the First National Bank of Georgia will reopen during their normal business hours as branches of Community & Southern Bank.

All of the failed bank’s services, including checks, ATM and debit cards, will remain active. “Checks drawn on the bank will continue to be processed,” the FDIC said in a statement. “Loan customers should continue to make their payments as usual.”

As of September of last year, the First National Bank of Georgia had approximately $832.6 million in total assets and $757.9 million in total deposits. Community & Southern Bank paid the FDIC a premium of 1.25 percent to assume First National Bank of Georgia deposits, the FDIC said. “In addition to assuming all of the deposits of the failed bank, Community & Southern Bank agreed to purchase essentially all of the assets.”

The FDIC and Community & Southern Bank entered into a loss-share transaction on approximately $607.4 million of First National Bank of Georgia’s assets. Community & Southern Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

The FDIC said it estimates that the cost to the Deposit Insurance Fund (DIF) will be $260.4 million. It said Community & Southern Bank’s acquisition of the deposits was the “least costly” resolution compared to other alternatives.

Friday’s closure was not only the tenth U.S. bank failure of 2010 but was also Georgia’s first bank failure since December 18, 2009. Regulators then closed the Rockbridge Commercial Bank in Atlanta.