Belated Bank Failure Friday

From the AJC:

Three more small Georgia banks failed Friday, pushing the state’s nation-leading total to 44 failures over the past two years.

One of the three banks was led by a chief executive who was also the one-time chairman and interim CEO of a bank that failed last year. Another had U.S. Rep. Phil Gingrey, R-Marietta, as a founding investor and board member until earlier this year.

All three banks — two in metro Atlanta and one based in extreme North Georgia— succumbed to soured real estate loans in the worst recession in generations.

Peoples Bank of Winder, Bank of Ellijay and First Commerce Community Bank of Douglasville were seized by regulators and sold as a package to Carrollton-based Community & Southern Bank.

Service at the banks will not be affected by the takeover, according to the FDIC, and customers will continue to have access to their accounts. The FDIC insures deposits up to $250,000.

The three failures will cost the FDIC’s insurance fund $225.5 million. Community & Southern agreed to assume all deposits and buy most of the failed banks’ assets under a loss-sharing deal with the FDIC.

Read the rest here.

2 comments

  1. AubieTurtle says:

    If a three bank failure post doesn’t get Charlie to come out of hiding, nothing will.

    Even with three on one day, the pace does appear to have slowed down quite a bit. Hopefully it won’t be long before the all of the damage of our building for the sake building “boom” economy is out in the open and can be dealt with. What worries me is that I doubt we’ve learened much from this. Given the chance to start up the build just to build machine again, we’d jump on it.

  2. Dave Bearse says:

    Aubie, it’s not really slowed down at all (at least in terms of number of failures). It’s been running at a half dozen failures a quarter for a while now.

    The post didn’t include that Phil Gingrey was on the Board of one of the failed banks until a few months ago. It seems a lot of fiscally conservative Georgia Congressman have all kinds of interesting relationships with the banking industry in Georgia.

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