Georgia’s Community Bank Fails in Second U.S. Bank Collapse of 2026

Community Bank and Trust - West Georgia was a Georgia community bank that saw an increase in troubled SBA loans before its collapse. It is the second U.S. bank failure this year, following the closure of Metropolitan Capital Bank & Trust on Jan. 30, 2026, highlighting asset-quality risks at community banks and the FDIC’s strategy of fast-tracking sales.

Georgia regulators closed the bank on May 1, 2026, and appointed the FDIC as receiver. The lender had $288 million in assets and $268 million in deposits at the end of 2025, including about $27 million above insurance limits. The Deposit Insurance Fund faces an estimated $97 million loss. Anchor Bank assumed the insured deposits and some assets, and the three branches reopened on May 4.