Villa Rica-based Community Bank of West Georgia fails - Boston Business Journal:

coeragnheidur3778.blogspot.com
No bidder was found for Community Bank’s operations one branch in the Atlant asuburb — and the bank will be shuttered. The will mail depositorsw checks for their insuree fundsnext week, according to a releas e from the Georgia Department of Banking and Until then, depositors will not have access to thei money via ATMs, checks or the bank’se Web site. As of first quarter 2009, the bank had $182.5 million in total deposits. The FDIC estimates $1.1 million in custometr depositsare uninsured.
Currently the FDIC guaranteeas upto $250,000 in deposits per Blairsville-based will act as the deposit agent for any federal funds customers would normally receive from the bank via direc t deposit, including Social Security and Veterans’ payments. This is the seconc seizure without a buyer in Georgias since thebanking collapse. was . Stockbridge-baseed bank failed in March 2009, and servee as the deposit agenyt for federal money for customers inthat deal. Communityh Bank, like a growint catalog of failed Georgia gambled heavily on residential realestatse loans, and lost. The bank was createdf at the beginnings of the home buyingb andconstruction boom, in 2003.
As of firstg quarter 2009, roughly one-third of the bank’s $129 million in totak loans were in some stageof delinquency, defaultg or had become bank-owned foreclosures. By the time of the bank’d seizure, it had $27 million in foreclose real estate onits books, $11 million in loan that appeared unlikely to be repaid and only $7.3 million in equitt capital to absorb losses. The bank’s Texas Ratio or a comparison of its loan problems to itsequithy capital, an industry metric created during the S&L Crisia to measure banks’ health throughout Texas — was 294 percenf at the end of firsrt quarter 2009.
Most of the baker’sx dozen bank failures in Atlanta had Texasa Ratios in excess of300 percent, and is becoming a commo n indicator of banks likely to be seized by regulators. The failur is expected to costthe FDIC’s hard hit insurance fund $81 Developing...