This Day On The Street
Continue to site
ADVERTISEMENT
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

Regulators Shut Down Georgia Bank

ATLANTA ( TheStreet) -- Georgia regulators closed Georgian Bank of Atlanta Friday, bringing the total number of failed U.S. banks and thrifts this year to 95.

The Georgia Department of Banking and Finance took over Georgian Bank late Friday and appointed the Federal Deposit Insurance Corp. receiver. The FDIC then arranged for all of the failed institution's deposits and essentially all of its assets to be assumed by First Citizens Bank and Trust of Columbia, S.C. The acquiring bank is a subsidiary of First Citizens Bancorp (FCBN).

Georgian Bank specialized in construction lending to residential developers in the suburbs of Atlanta and also provided private banking services to businesses and wealthy depositors. More than half of the bank's assets were concentrated in construction loans and commercial real estate loans.

Credit quality took a nosedive in the second quarter, with nonperforming assets -- including nonaccrual loans and accruing loans past due 90 days or more, along with repossessed real estate -- making up 17.19% of total assets as of June 30. That marked a deterioration from the previous quarter, when the nonperforming assets ratio was 5.13%.

On Friday, the FDIC made public regulatory orders it had given Georgian Bank on Aug. 24, including a cease-and-desist order citing ineffective supervision by the bank's board of directors and inadequate capital levels. The order also cited lax underwriting standards and an inadequate liquidity plan, and it required the bank to increase its capital ratios within 120 days in order to maintain a Tier 1 leverage ratio of at least 8% and a total risk-based capital ratio of at least 10%.

chart

1 of 3

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
Submit an article to us!
SYM TRADE IT LAST %CHG
FCBN $922.25 0.46%
ZION $28.75 1.52%
BBT $39.09 1.64%
FITB $20.44 0.99%
JPM $64.72 1.74%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs