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SunTrust Profits Among Wilting Georgia Banks

ATLANTA ( TheStreet) -- Georgia's banking industry continues its shakeout, as the state continues to lead with the highest number of bank failures and undercapitalized institutions. Meanwhile, most of the largest players in the state are turning a profit.

According to data provided by SNL Financial, 38 of Georgia's 255 banks and thrifts were undercapitalized per ordinary regulatory guidelines as of March 31, far ahead of second-place Florida, which had 20 institutions included on TheStreet's first-quarter Bank Watch List.

Regulators have shuttered 12 Georgia banks so far in 2011.

Since the TheStreet's first-quarter Watch List is based solely on capital ratios, we take a different approach on our quarterly coverage of banks in key states, by looking at overall credit quality to identify troubled institutions.

Georgia Banks with Weakest Asset Quality

The following list includes all banks in the state with nonperforming assets comprising more than 15% of total assets. Please click the image to expand the table.

Nonperforming assets (NPA) include nonaccrual loans, loans past due 90 days or more and repossessed assets. Government-guaranteed loan balances are excluded. The ratio of net charge-offs to average loans is annualized. The total risk-based capital ratios needs to be at least 8% for most institutions to be considered adequately capitalized by regulators and 10% for most to be considered well-capitalized. Most of the undercapitalized banks on the above list are operating under regulatory orders to achieve and maintain total risk-based capital ratios higher than 10%.

The list also includes financial strength ratings provided by Weiss Ratings. Weiss Ratings uses a very conservative ratings model, placing the greatest weight on capital strength, credit quality and earnings stability to assign ratings ranging from A-plus (Excellent) to E-minus (Very Weak).

The Georgia bank with the highest nonperforming assets ratio as of March 31 was Douglas County Bank of Douglasville. The bank was included in TheStreet's first-quarter Bank Watch List, because its total risk-based capital ratio was 6.86%, which was below the 8% required for most banks to be considered adequately-capitalized under regulatory guidelines.

The largest Georgia bank with nonperforming assets exceeding 15% of total assets as of March 31 was First State Bank of Stockbridge, with $575 million in total assets. The bank has been unable to comply with a May 2010 consent order with state regulators and the Federal Deposit Insurance Corp. to achieve and maintain a total risk-based capital ratio of at least 10%.

Georgia's Largest Banks

Here are the 10 largest banks in the state, along with key metrics as of March 31:
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