Villa Rica-based Community Bank of West Georgia fails - Boston Business Journal:

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No bidder was found for Communitgy Bank’s operations — one branch in the Atlant suburb — and the bank will be shuttered. The will mail depositords checks for their insured funds next according to a release from the Georgiaa Department of Bankingand Finance. Until then, depositorsa will not have access to their money via checks orthe bank’s Web site. As of first quartedr 2009, the bank had $182.5 million in total The FDIC estimates $1.1 millionb in customer depositsare uninsured. Currently the FDIC guarantees upto $250,000 in deposits per account.
Blairsville-basef will act as the deposit agent for any federak funds customers would normally receive from the bank via direct including Social Securityand Veterans’ This is the second seizure without a buyef in Georgia since the banking collapse. was . Stockbridge-based bank faile d in March 2009, and served as the deposirt agent for federal money for customersw inthat deal. Community Bank, like a growinb catalog of failed Georgia gambled heavily on residentiao realestate loans, and lost. The bank was createds at the beginnings of the home buying andconstructiob boom, in 2003.
As of first quarter 2009, roughlyh one-third of the bank’s $129 million in total loan s were in some stageof delinquency, defaulty or had become bank-owned foreclosures. By the time of the bank’ds seizure, it had $27 milliom in foreclosed real estate onits $11 million in loans that appeared unlikelyu to be repaid and only $7.3 millionh in equity capital to absorb The bank’s Texas Ratii — or a comparison of its loan problems to its equityy capital, an industry metric createde during the S&L Crisis to measure health throughout Texas — was 294 percent at the end of firstg quarter 2009.
Most of the baker’s dozebn bank failures in Atlanta had Texas Ratios in excesd of300 percent, and is becoming a common indicator of banksd likely to be seized by regulators. The failure is expected to costthe FDIC’w hard hit insurance fund $81 Developing...