This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Georgia Banks Face More Pain

A growing number of Peach State banks are the pits.

Few states have been hit harder by the economic crisis over the past seven months than Georgia, where many banks are now paying for large bets made on construction loans during the building boom in the Atlanta metropolitan area. Omni National Bank of Atlanta on Friday became the state's ninth since the beginning of 2008, the most in the nation during that time.

All nine Georgia bank failures have taken place since Aug. 29. The nine failed Georgia banks had $4.7 billion total assets and the estimated cost to the Federal Deposit Insurance Corp.'s insurance fund for the failures was $1.4 billion.

There's a lot more trouble ahead. Ratings' analysis of Dec. 31 financial information for Georgia's 331 banks and thrifts shows that there are over 30 institutions in a weakened condition.

Three of the four Georgia banks that have failed so far during 2009 were undercapitalized under ordinary regulatory guidelines as of Dec. 31. Four other Georgia banks and thrifts were undercapitalized by regulatory standards as of Dec. 31 data. Ratings has assigned E- (very weak) financial strength ratings to each of them.

Remaining Undercapitalized
Georgia Banks and Thrifts
-Dec. 31, 2008 ($Mil)
Highline Financial

All the bank and thrift ratings based on Dec. 31 financial reports will soon be updated on's bank and thrift ratings screener.

All four undercapitalized Georgia institutions followed the pattern of high concentrations in residential construction and land development loans, and all four had very high overall levels of nonperforming assets as of Dec. 31.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SEBC $9.87 0.00%
BBT $36.54 0.00%
RF $9.09 0.00%
STI $39.43 0.00%
AAPL $112.12 0.00%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs