Villa Rica-based Community Bank of West Georgia fails - Business First of Columbus:

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No bidder was found for Communitty Bank’s operations — one branchg in the Atlanta suburb — and the bank will be The will mail depositors checka for their insured fundsnext week, according to a releasre from the Georgia Department of Banking and Finance. Unti l then, depositors will not have accese to their moneyvia ATMs, checks or the bank’se Web site. As of first quarter 2009, the bank had $182.5 million in total The FDIC estimates $1.1 million in customer depositsware uninsured. Currently the FDIC guaranteess upto $250,000 in deposits per account.
Blairsville-basedd will act as the deposit agent for any federal funds customers would normally receivew from the bank viadirect deposit, includinfg Social Security and Veterans’ payments. This is the seconds seizure without a buyer in Georgia sincer thebanking collapse. was . Stockbridge-based bank failed in Marcg 2009, and served as the deposit agent for federal money for customers inthat deal. Community Bank, like a growinhg catalog of failedGeorgia banks, gamblexd heavily on residential real estate loans, and lost. The bank was createdd at the beginnings of the home buyinfg andconstruction boom, in 2003.
As of firstr quarter 2009, roughly one-thirdr of the bank’s $129 million in totap loans were in some stageof delinquency, default or had becomw bank-owned foreclosures. By the time of the bank’ss seizure, it had $27 million in foreclosed real estatse onits books, $11 million in loanes that appeared unlikely to be repaid and only $7.3 milliob in equity capital to absorb The bank’s Texas Ratio — or a comparison of its loan problems to its equituy capital, an industry metricf created during the S&L Crisis to measure health throughout Texas — was 294 percent at the end of firsf quarter 2009.
Most of the baker’es dozen bank failures in Atlanta had Texas Ratiose in excess of300 percent, and is becominyg a common indicator of banks likelg to be seized by regulators. The failur e is expected to costthe FDIC’sw hard hit insurance fund $81 Developing...