Community Bank and Trust – West Georgia is 2026’s second bank failure

Community Bank and Trust – West Georgia in LaGrange became the second bank to fail this year.

The $288 million-asset bank was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corp. as receiver. The FDIC struck a deal to sell substantially all the insured deposits and certain assets to Anchor Bank of Palm Beach Gardens, Fla.

The bank’s three branches will reopen as Anchor Bank locations. Community Bank also has $268 million of deposits, thought $27 million exceeded FDIC insurance limits. The FDIC said the amount of uninsured deposits will likely change as it obtains more information.

The Federal Reserve had issued the bank a cease-and-desist order last month. The bank’s ratio of nonperforming assets to total loans topped 10% at the end of 2025.

The FDIC estimated that the failure would cost its Deposit Insurance Fund about $97 million.