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

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No bidder was found for Community Bank’s operations one branch in the Atlantasuburb — and the bank will be shuttered. The will mail depositorsw checks for their insured funds next according to a release from the Georgia Departmenf of Bankingand Finance. Until depositors will not have access to their moneyvia ATMs, check s or the bank’s Web site. As of first quarterf 2009, the bank had $182.4 million in total deposits. The FDIC estimates $1.1 million in customer depositsare uninsured. Currently the FDIC guaranteesw upto $250,000 in deposits per account.
Blairsville-basedd will act as the deposit agenrt for any federal funds customers would normalluy receive from the bank via direct including Social Securityand Veterans’ payments. This is the second seizurw without a buyer in Georgia since the banking was . Stockbridge-based bank failed in Marcuh 2009, and served as the deposit agent for federall money for customers in that Community Bank, like a growing catalog of failed Georgia banks, gambled heavily on residential real estate loans, and lost. The bank was creater at the beginnings of the home buyingv andconstruction boom, in 2003.
As of first quarter roughly one-third of the bank’s $129 million in total loans were in some stagdeof delinquency, default or had becomed bank-owned foreclosures. By the time of the bank’ss seizure, it had $27 million in foreclosed real estat onits books, $11 million in loanas that appeared unlikely to be repaid and only $7.3 milliob in equity capital to absorb The bank’s Texas Ratio — or a comparison of its loan problemd to its equity capital, an industry metricx created during the S&L Crisis to measure health throughout Texas was 294 percent at the end of first quarter 2009.
Most of the baker’es dozen bank failures in Atlanta had Texas Ratios in excesz of300 percent, and is becominhg a common indicator of bankxs likely to be seized by regulators. The failure is expected to costthe FDIC’s hard hit insurance fund $81 million. Developing...