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Bank Beat---One Georgia Bank Fails No Profit six years,Other only one year profit, Making Total 19 this Year


 


 

The two offices of CreekSide Bank, Woodstock, Georgia were closed with Georgia Commerce Bank, Atlanta, Georgia, acquired the banking operations, including all the deposits. This is a young bank, formed July 24, 2006 with an office in Acworth



and Woodstock,

 

Located 30 miles north of Atlanta and 12 miles south of Canton, CreekSide Bank went from 20 full time employees in year-end 2008 to 13 full time employees, June 30, 2011.



 

The bank never had a profitable year and within five years went from equity of $16.7 million to $651,000 June 30, 2011. Again, it was construction and land development loans, followed by nonfarm nonresidential loans that took this bank down. Tier 1 risk-based capital ratio: 0.78%

"Larry Peterson, formerly president and CEO of Fidelity Bank, Atlanta, was president and Copal Wilson, previously COO and CFO Century Bank, Cartersville, CFO. Six of CreekSide's 12 directors have served on other bank boards. Notable directors include Bill Archer, executive vice president, Georgia Power Co.; Paul Beckham, chairman of public relations firm Hope-Beckham Inc.; Mike Evans, vice chairman of the Georgia Department of Transportation board; professional golfer Larry Nelson; and Orlando Wilson, retired fishing personality."

www.bizjournals.com/atlanta/stories/2006...

Never off to a good start; the years 2009 and 2010 did them in, with bad land and construction loan judgment, and they basically ran the bank into the ground.

(in millions, unless otherwise)
 

Net Equity

 
2006
$16.7
2007
$16.5
2008
$14.1
2009
$8.3
2010
$2.9
6/30
$651,000

Profit

 
2006
-$1.0
2007
-$775,000
2008
-$3.1
2009
-$6.0
2010
-$5.5
3/31
-$2.3

Non-Current Loans

 
2006
0
2007
0
2008
$4.9
2009
$10.2
2010
$16.7
6/30
$16.8

Charge Offs
2006 0
2007 0
2008 $55,000 ($29,000 Construction and Land, $$24,000 1-4 family)
2009 $3.7 ($3.5 Construction and land, $101,000 commercial/industrial, $84,000 1-4 family)
2010 $2.8 ($2.2 Construction and land, $399,000 commercial/industrial, $243,000 nonfarm-nonres.)
6/31 $547,000 ($538,000 construction and land, $282,000 1-4 family, $227,000 nonfarm-nonres.

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans:

As of June 30, 2011, CreekSide Bank had total assets of $102.3 million and total deposits of $96.6 million. The loss-share transaction for CreekSide Bank covers $69.2 million of its assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for CreekSide Bank will be $27.3 million.

www.fdic.gov/news/news/press/2011/pr1114...
 


 

Patriot Bank of Georgia, Cumming, Georgia was closed with Georgia Commerce Bank, Atlanta, Georgia, acquired the banking operations, including all the deposits. Formed July 3, 2006, the bank was down to 16 full time employees June 30, 2011. Tier 1 risk-based capital ratio 2.12%.

This bank only had one year of profit, 2007 at $673,000, and went in 5 1/2 years from $15.7 million in equity to $2.7 million; again the largest charge offs in construction and land development loans.
 

John D. Bramblett
President & CEO
Patriot Bank of Georgia
Board of Directors, Georgia Banking Association
 

Bramblett announced the bank officially opened for business on July 3, 2006 with "...a staff of 12 seasoned bankers.” Collectively, the staff has over 207 years of banking experience or an average of 17 years per employee" said Bramblett. "We are excited about the group of talented banking professionals we have assembled. The staff includes John D. Bramblett, President and CEO; Gary S. Lochbaum, Executive Vice President and Senior Lender; Lynn H. Barron, Executive Vice President and Chief Financial Officer; Christian F. Matulich, Senior Vice President, Residential Construction/Mortgage Manager..."
www.zoominfo.com/#!search/profile/person...

(in millions, unless otherwise)
 

Net Equity

 
2006
$15.7
2007
$16.8
2008
$13.7
2009
$9.7
2010
$3.7
6/30
$2.7

Profit

 
2006
-$191,000
2007
$673,000
2008
-$3.3
2009
-$4.0
2010
-$5.95
6/30
-$1.4

Non-Current Loans

 
2006
0
2007
0
2008
$10.4
2009
$8.9
2010
$24.1
6/30
$27.6

Charge Offs

2006 0
2007 0
2008 $1.3 ($1 Construction and land, $138,000 nonfarm/nonresidential, $49,000 commercial/industrial
2009 $1.9 ($689,000 C&L, $467,000 1-4 family, $366,000 commercial/industrial $244,000 nonfarm/nonres, $130,000 multifamily
2010 $4.1 ($1.9 C&L, $1.2 commercial, $716,000 nonfarm/nonres., $348,000 1-4 family, $16,000 indiv.)
6/31 $557,000 ($371,000 C&L, $181,000 1-4 family, $186, commercial/ind. $105,000 nonfarm)

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non Residential loans.

As of June 30, 2011, Patriot Bank of Georgia had approximately $150.8 million in total assets and $111.2 million in total deposits. The loss-share transaction for Patriot Bank of Georgia covers $136.2 million of its assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Patriot Bank of Georgia will be $44.4 million.

www.fdic.gov/news/news/press/2011/pr1114...

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

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

Bank Beat:
www.leasingnews.org/Conscious-Top%20Stor...