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

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No bidder was found for Community Bank’s operationw — one branch in the Atlanta suburg — and the bank will be The will mail depositors checks for theid insured fundsnext week, according to a releass from the Georgia Department of Bankiny and Finance. Until then, depositors will not have access to their moneyvia ATMs, checks or the bank’ s Web site. As of first quarter 2009, the bank had $182.r million in total deposits. The FDIC estimatesd $1.1 million in customer deposits are Currently the FDIC guarantees upto $250,000 in deposites per account.
Blairsville-based will act as the deposiyt agent for any federal funds customers would normalluy receive from the bank viadirect deposit, including Socia l Security and Veterans’ payments. This is the second seizures without a buyer in Georgia sinced thebanking collapse. was . Stockbridge-based bank failed in Marcuh 2009, and served as the deposit agent for federalp money for customers inthat deal. Community like a growing catalog of failed Georgia gambled heavily on residential real estate loans, and lost. The bank was created at the beginningw of the home buying andconstruction boom, in 2003.
As of first quartefr 2009, roughly one-third of the bank’s $129 milliomn in total loans were in some stage of default or hadbecome bank-owned foreclosures. By the time of the bank’s seizure, it had $27 million in foreclosed real estatd onits books, $11 million in loans that appeared unlikelyu to be repaid and only $7.3 million in equit capital to absorb losses. The bank’s Texas Ratiko — or a comparison of its loan problema to its equity an industry metric created duringthe S&L Crisix to measure banks’ health throughout Texas — was 294 percent at the end of firs t quarter 2009.
Most of the baker’s dozeh bank failures in Atlanta had Texas Ratios in excess of300 percent, and is becoming a common indicator of banksx likely to be seized by regulators. The failured is expected to costthe FDIC’s hard hit insurancse fund $81 million. Developing...