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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Georgia Has Failed Banks on Its Mind

ATLANTA ( TheStreet) -- Georgia has the unfortunate distinction of leading the U.S. with 21 bank failures this year and last. And many other banks in the state are suffering from very high levels of bad loans.

Most of the failed Georgia institutions made outsized bets during the real estate boom on residential and commercial construction projects in the Atlanta area. Since the quality of commercial real estate loans is declining sharply as the later stages of the banking crisis unfold, there are dozens of banks and thrifts in trouble.

Strongest Georgia Banks and Thrifts

Based on March 31 financial reports, 24 of Georgia's 322 banks and thrifts were rated B-plus (good) or above, down from 33 the previous quarter.

Georgia Banks and S&Ls Rated B+ or Higher
Cat Daily Chart

The ratings encompass a large number of data, placing the greatest weight on capital strength, credit quality and earnings stability. To be considered well-capitalized, most banks, and savings and loans need to maintain a total risk-based capital ratio of at least 10%.

Largest Georgia Institutions

The following table includes capital, earnings and asset quality for the 10 largest Georgia banks and thrifts.

10 Largest Georgia Banks and S&Ls
Cat Weekly Chart

The highest-rated bank or thrift among Georgia's 10 largest institutions was BB&T Financial of Columbus, a relatively small subsidiary of BB&T Corp. (BBT - Get Report).

BB&T Financial focuses on credit card lending. Its financial strength rating has been C-plus (fair) for the past three quarters.

Wells Fargo (WFC - Get Report) also has a credit card subsidiary among the 10 largest Georgia banks, Wachovia Card Services of Atlanta. This institution was assigned a financial rating of C despite its increasing credit card charge-offs, because it's strongly capitalized. SunTrust Bank of Atlanta, Georgia's largest financial institution and the main subsidiary of SunTrust Banks Inc. (STI - Get Report), was downgraded to D-minus from D-plus the previous quarter because of a $783 million net loss and declining capital levels. The rating didn't reflect the $2.3 billion in common equity raised by the holding company in June or the holding company's narrower second-quarter loss.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
BBT $38.93 -0.31%
SNV $27.90 -0.78%
STI $41.02 -0.27%
WFC $54.52 -0.45%
AAPL $125.05 -1.00%


DOW 17,854.00 -122.31 -0.68%
S&P 500 2,077.79 -8.45 -0.40%
NASDAQ 4,926.3470 -21.0940 -0.43%

Partners Compare Online Brokers

Free Reports

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