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Georgia Bank Failures Lead the Nation

May 23, 2011 12:05 PM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.


 

Georgia leads the nation with 63 bank failures since August, 2008. The state accounts for almost 30% of all banking failures so far in 2011. The latest has lost $94.3 million in the last two years and bank equity had dropped to $9.58 million with a 1.21% tier 1 capital risk. Almost half their loans continued in the problem area. The cost to the FDIC Insurance fund: $273.5 million. The second Georgia bank failure of $156.5 million brings the total cost up to $430 million.
 


 

The 16 branches of Atlantic Southern Bank, Macon, Georgia were closed with CertusBank, National Association, Easley, South Carolina, acquired the banking operations, including all the deposits. Founded December 10, 2001, the full time employee count had gone from the previous year from 162 to 149 with four offices in Macon, two in Brunswick and one in Bonaire, Byron, Darien, Jacksonville, Lizella, Rincon, Roberta, Savannah, Valdosta, and Warner Robins.

Bank equity had dropped from $38.9 million year-end 2009 to $20.5 million year-end 2010 with non-current loans at $96.6 million, and as of March 31, 2011, net equity of $9.58 million. The bank had lost $58.5 million in 2009 after net charge offs of $33.3 million ($21.7 million in construction and land development, $3.99 million commercial and industrial loans, $2.2 million secured by multifamily residential properties, 2.28 million secured by multifamily residential properties, $2.2 million secured by nonfarm residential properties and had lost $17.7 million year-end 2010 with $13.7 million in charge offs ($9.2 million construction and land development, $1.6 million nonfarm residential, $1.3 million in 1-4 family residential properties, $930,000 in commercial and industrial loans, plus a number of other categories.)

March 31, 2011 the bank showed a $2.5 million loss (net equity was $9.58 million). Tier 1 risk -based capital ratio was 1.21%.

Atlantic Southern Bank had total assets of $741.9 million and total deposits of $707.6 million. The loss-share transaction for Atlantic Southern Bank was $585.1 million.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Atlantic Southern Bank will be $273.5 million.
http://www.fdic.gov/news/news/press/2011/pr11089.html
 


 

First Georgia Banking Company, Franklin, Georgia was closed with CertusBank, National Association, Easley, South Carolina, acquired the banking operations, including all the deposits. Founded November 3, 2003, they had 158 employees at 15 branches, with two each in Carrolton, Columbus, Cornelia, Dalton and one in Bogart, Bremen, Franklin, Greensboro, Jefferson, and Villa Rica. As a result of these transactions, CertusBank(SM) expands its existing footprint outside of South Carolina, adding 25 locations in Georgia and one in Florida. Its assets now comprise $1.8 billion.

In January 2011, CertusBank(SM) acquired the assets of CommunitySouth Bank & Trust of Easley, SC through a similar transaction with the FDIC. Today CertusBank(SM) continues to operate all six former CommunitySouth branches under the CertusBank(SM) name in the Upstate of South Carolina.


Milton H. Jones, Jr. CertusBank Chairman, CEO, President

"We're truly excited for CertusBank(SM) to extend its presence into Georgia and northeast Florida," said CertusBank(SM) Chairman, CEO and President Milton H. Jones, Jr., whose 30-plus-year banking career includes serving as Georgia market president for Bank of America. "The State of Georgia is strategic to our growth. Our footprint covers some of the most economically diverse and promising cities in the country, and we look forward to being an integral part of the communities we serve."

First Georgia Banking Company had total assets of $731.0 million and total deposits of $702.2 million. The loss-share transaction for First Georgia Banking Company was $452.1 million.

Bank equity had gone from $33.76 million in year-end 2009 to $17.6 million year-end 2010 Non-current loans were $48.6 million.

First Georgia Banking lost $36.6 million year-end 2009 and $15.47 million year-end 2011 with charge offs of $30.3 million year-end 2009 ($13.4 million construction and land development, $6.8 million 1-4 family residential ptoperty, $4.9 million nonfarm non residential property, $2.6 million commercial and industrial loans, $1.2 million multifamily residential and $14.7 million year-end 2010 ( $5.1 construction and land development, $.6 million 1-4 family residential property, $2.5 million secured by nonfarm nonresidential property, $516,000 multifamily residential property, $275,000 commercial and industrial, $369,000 loans to individuals, and $250,000 in "other loans."

March 31, 2011 the bank had lost $2.38 million and equity capital was at $5.78 million. Tier 1 risk-based capital ratio was 1.37%.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for First Georgia Banking Company, $156.5 million
http://www.fdic.gov/news/news/press/2011/pr11089.html
 


 

The three branches of Summit Bank, Burlington, Washington, were closed Friday by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of Summit Bank.

Prior to the acquisition of Summit Bank, Columbia Banking System had 85 banking offices, including 60 branches in Washington State and 25 branches in Oregon. Columbia Bank does business under the Bank of Astoria name in Astoria, Warrenton, Seaside, Cannon Beach, Manzanita and Tillamook in Oregon

As of March 31, 2011, Summit Bank had approximately $142.7 million in total assets and $131.6 million in total deposits. Columbia State Bank will pay the FDIC a premium of 0.75 percent to assume all of the deposits of Summit Bank. In addition to assuming all of the deposits of the failed bank, Columbia State Bank agreed to purchase essentially all of the assets.

Founded January 1, 1914 as the Bank of Concrete, Summit had 36 full time employees located in Burlington, Concrete and Mount Vernon. Equity had gone from $13.2 million year-end 2009 to $6.2 million year-end 2010 to $2.7 million March 31, 2011. Non-current loans at year-end 2010 were $9.7million.

Summit lost $314,000 year-end 2009 with $1.5 million charge offs ($1 million construction and land development, $442 secured by 1-4 family residential properties and $8.68 million year-end 2010 with $6.1 million in charge offs ($2.5 million construction and land development, $1.67 million in 1-4 family residential properties and $1.5 million in commercial and industrial loans.)
 

March 31, 2011 the bank reported a loss of $3.49 million. Tier 1 risk-based capital ratio was 2%. The FDIC and Columbia State Bank entered into a loss-share transaction on $113.4 million of Summit Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $15.7 million.
http://www.fdic.gov/news/news/press/2011/pr11090.html
 

Tracking Bank Failures Map:
http://graphicsweb.wsj.com/documents/Failed-US-Banks.html

List of Bank Failures:
http://www.fdic.gov/bank/individual/failed/banklist.html
 

Bank Beat:
http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm

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