From the Atlanta Business Chronicle

The Federal Deposit Insurance Corp. and Office of Thrift Supervision shuttered NetBank on Friday, putting its approval on ING Bank’s assumption of the failed bank’s insured deposits.

NetBank is the largest bank failure in Georgia history, is the second FDIC-insured bank to fail this year and is the first in the state since AmTrade International Bank of Atlanta closed in September 2002.

NetBank primarily issued subprime and adjustable rate mortgage loans backed by online national deposits. The company issued mortgage loans particularly in southwest Florida, an area hard hit by the housing slowdown and mortgage meltdown.

Further information about the closing may be obtained at the FDIC website (click here).

From the company’s website —

On September 28, 2007, NetBank, Alpharetta, GA was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.

The NetBank web site will be closed from 3:00 pm to 6:00 EST, on September 28th and will reopen in a read only mode. Normal online services will be restored in the early evening Sunday, September 30th.