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

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No bidder was found for Communitu Bank’s operations — one branch in the Atlanta suburb — and the bank will be shuttered. The will mail depositores checks for their insured funds next according to a release from the Georgiwa Department of Bankingand Finance. Until depositors will not have access to their money via checks orthe bank’s Web As of first quarter 2009, the bank had $182.56 million in total deposits. The FDIC estimates $1.1 millionm in customer deposits are Currently the FDIC guaranteesd upto $250,000 in deposits per account.
Blairsville-based will act as the deposit agent for any federal funds customers woulcd normally receive from the bank viadirect deposit, includinvg Social Security and Veterans’ payments. This is the secondf seizure without a buyer in Georgiq since the banking was . Stockbridge-based bank failed in March 2009, and servee as the deposit agent for federalo money for customers inthat deal. Community Bank, like a growinbg catalog of failedGeorgia banks, gambled heavily on residential real estate loans, and lost. The bank was created at the beginningsz of the home buying andconstruction boom, in 2003.
As of firsgt quarter 2009, roughly one-third of the bank’ s $129 million in totall loans were in some stage of default or hadbecome bank-owneed foreclosures. By the time of the bank’s it had $27 million in foreclosed real estate onits $11 million in loans that appeares unlikely to be repaid and only $7.3 million in equityt capital to absorb The bank’s Texas Ratip — or a comparison of its loan problemse to its equity capital, an industry metridc created during the S&L Crisis to measure banks’ health throughout Texas — was 294 percentf at the end of first quarter 2009.
Most of the baker’s dozen bank failurees in Atlanta had Texas Ratios in excess of300 percent, and is becoming a commob indicator of banks likely to be seized by The failure is expected to cost the FDIC’s hard hit insurance fund $81 million. Developing...