This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Georgia Banks Face More Pain

Stocks in this article: RF STI BBT

While EBank of Atlanta had the lowest capital ratios, Southern Community Bank had the highest exposure of capital to problem assets, with a ratio of nonperforming loans and securities to core capital and loan loss reserves of 204.16%. This is also known as the "Texas ratio."

Bank failures are not limited to institutions that report being undercapitalized. Since regulatory reports containing capital ratios only come out quarterly and take quite some time to be made available, the information is always a bit stale.

Significant Georgia Bank Failures

Omni National Bank, Freedom Bank of Georgia and FirstBank Financial Services, three of the four Georgia bank failures this year, all were undercapitalized by ordinary regulatory guidelines as of Dec. 31.

Regions Financial (RF), which in August acquired deposits and branches of Integrity Bank, Georgia's biggest failure, also acquired FirstBank Financial Services of McDonough, which failed on Feb. 6 and had $337 million in assets.

Omni National was the second largest Georgia failure, with $980 million in total assets. Unlike most bank failures, the FDIC didn't line up another institution to buy Omni's deposits and branches, but rather appointed SunTrust (STI) paying agent, to service Omni's insured retail depositors until April 27th, by which time depositors would be required to withdraw their money or move their deposits to SunTrust accounts.

Another significant Georgia failure was Haven Trust Bank of Duluth, which was shut down by state regulators on Dec. 12, with all deposits and branches acquired by BB&T (BBT).

FirstCity Bank was considered adequately capitalized as of Dec. 31, with a tier-1 leverage ratio of 4.57% and a total risk-based capital ratio of 8.54%.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs