Hometown Community Bank, Braselton, Ga. shut down by FDIC

November 16, 2012 17:51 pm

by Bill Dawers · 14 comments

From the FDIC:

Hometown Community Bank, Braselton, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CertusBank, National Association, Easley, South Carolina, to assume all of the deposits of Hometown Community Bank.

The two branches of Hometown Community Bank will reopen on Saturday as branches of CertusBank, N.A. [...]

As of September 30, 2012, Hometown Community Bank had approximately $124.6 million in total assets and $108.9 million in total deposits. In addition to assuming all of the deposits of the failed bank, CertusBank, N.A. agreed to purchase essentially all of the assets. [...]

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $36.7 million. Compared to other alternatives, CertusBank, N.A.’s acquisition was the least costly resolution for the FDIC’s DIF. Hometown Community Bank is the 50th FDIC-insured institution to fail in the nation this year, and the tenth in Georgia. The last FDIC-insured institution closed in the state was Jasper Banking Company, Jasper, on July 27, 2012.

Braselton straddles Jackson, Hall, Gwinnett, and Barrow counties. The population was just over 7500 in 2010, but that’s up dramatically from 1200 in 2000.

As home prices have stabilized and even risen, and as banks have made bold moves to deal with troubled loans, the FDIC has been much less active. Twenty-three Georgia banks failed in 2011 — far more than the 10 that have failed in 2012.

But there are still dozens of Georgia banks on the updated version of the unofficial problem bank list.

xdog November 16, 2012 at 6:37 pm

Thanks for the note.

I had thought in-state banks had passed through their times of troubles. Now I wonder how many more will fall.

Charlie November 16, 2012 at 7:01 pm

We’re through the worst of it. Not yet over, but closer to the end than the beginning.

Bill Dawers November 16, 2012 at 9:04 pm

We could see just a handful of Georgia banks close in 2013 — and any that get through the year stand a really good chance of making it.

IndyInjun November 17, 2012 at 8:34 am

At one point, the statewide Texas ratio was 95. Anything over 100 once assured failure, but that was before the government decided to rape savers with zero-interest rates. The financial sector became 40% of the economy from less than 15%, or so, and now the inevitable reversion to mean is being fought with every last ounce of ponzi finance that can be ginned up in computers.

All of the hand wringing over the “fiscal cliff” and $16 trillion of debt isn’t misplaced, but what about the $16 trillion more spent to prop up the banks? I ride by the scads of branch banks and see nothing but welfare kings and queens feasting off of the public.

You have to look no further than who the House and Senate banking chairmen are and what their history has been to see that the rotten bankers still control Georgia.

The Last Democrat in Georgia November 16, 2012 at 7:28 pm

This latest bank closing could only mean one thing…That it’s time for another exciting edition of BANK FAILURE FRIDAY!!!!!! WOO-HOO!!!

saltycracker November 17, 2012 at 8:53 am

Don’t know which is best, kicking the can down the road and letting banks sit on non-performing assets by loaning them money on the cheap while the market slowly dries up the blood or putting interest rates back to 50 year averages and getting it over with.

Until then savers will have 4% of their money transferred to debtors and financial institutions that made bad decisions.

I vote for the latter. But, the fiscal cliff short term fix may again reward debtors & boot the can.

Harry November 17, 2012 at 9:33 am

The NY/DC crowd wants to extend their good times at our expense. The result is more inflation and unemployment. Count on it.

IndyInjun November 17, 2012 at 10:11 am

The Wiemar scenario looks now to be a certainty. It is the path of least resistance AND all metrics for contracts, business, publicly-held corporations and debt service are predicated on “growth.” Growth is getting hard/nearly impossible to attain organically, so those folks who are connected and with hands on the levers of power WILL ‘print’ their way out…….or try to.

The free money goes into the sure things – the necessities of life – so that those who created this massive fraud come to control those things, pushing the masses into desperation. There will be war. I am truly glad that I am not a banker. Their game has hit its limit at this juncture.

To close, hearing Saxby define a “derivative” on C-Span a couple of years ago and knowing the poor stiff was charged with reforming the things was sort of like hearing Lee Anderson fumble and stumble around his concept of the Federal Reserve. All in all, Saxby is just a taller Anderson with more refinement.

saltycracker November 17, 2012 at 10:48 am

Nah – there is plenty of equity left in this house to borrow – it isn’t over until it is over-
There is no conspiracy, just stupidity….

IndyInjun November 17, 2012 at 12:57 pm

Why does everything have to be a “conspiracy” instead of an unfortunate cascading of shared financial and economic interests gone awry? The result is the same. More important, the damage to us is the same.

The Last Democrat in Georgia November 17, 2012 at 2:05 pm

“Why does everything have to be a “conspiracy” instead of an unfortunate cascading of shared financial and economic interests gone awry?”

…Because engaging in conspiracy theories and rampant spectulation is so much more fun than attributing something to just being a mere coincidence and then just dropping it?

Crazy is a lot more fun than sane…Just look at how much more fun those who are members of the local, state and federal levels of government get to have by ridin’ the “Crazy Train” on a never-ending basis.

Harry November 17, 2012 at 2:13 pm

Present company excepted. ;)

IndyInjun November 17, 2012 at 6:46 pm

Crooked is treated as more titillating than stupid, but the end result is that our money is gone irrespective of whether it was taken via fraud or wasted via stupidity. I try to treat stupdity and fraud with equal disdain.

IndyInjun November 17, 2012 at 6:51 pm

‘Stupdity’ can be typing too fast. Fortunately a PP post is not a wire transfer or one of Saxby’s $10 million undocumented phone calls turned into money via a fake Credit Default Swap.

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