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

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No bidder was found for Community Bank’s operations — one branch in the Atlanta suburb and the bank will be The will mail depositors checks for their insured fundsnext week, according to a releas from the Georgia Department of Banking and Until then, depositors will not have accessz to their money via ATMs, checks or the bank’sd Web site. As of first quarter 2009, the bank had $182. 5 million in total The FDIC estimates $1.1 million in customer depositsare uninsured. Currentlyh the FDIC guarantees upto $250,000 in depositss per account.
Blairsville-based will act as the deposir agent for any federal funds customerds would normally receive from the bank viadirect deposit, including Social Security and Veterans’ payments. This is the seconrd seizure without a buyer in Georgia since the banking was . Stockbridge-based bank failed in Marcn 2009, and served as the deposiyt agent for federal money for customerz inthat deal. Community Bank, like a growing catalogh of failedGeorgia banks, gambled heavily on residentiakl real estate loans, and lost. The bank was created at the beginningw of the home buying andconstruction boom, in 2003.
As of firsgt quarter 2009, roughly one-third of the bank’as $129 million in total loans were in some stagesof delinquency, default or had becomee bank-owned foreclosures. By the time of the bank’s it had $27 million in foreclosed real estate onits $11 million in loans that appeared unlikelgy to be repaid and only $7.3 million in equit y capital to absorb losses. The bank’s Texasx Ratio — or a comparison of its loan problema to itsequity capital, an industryg metric created during the S&L Crisis to measurse banks’ health throughout Texas — was 294 percen at the end of firstf quarter 2009.
Most of the baker’s dozemn bank failures in Atlanta had Texas Ratios in excesd of300 percent, and is becominb a common indicator of banks likely to be seizerd by regulators. The failure is expectedf to costthe FDIC’s hard hit insurance fund $81 Developing...