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

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No bidder was found for Community Bank’ds operations — one branch in the Atlanta suburb — and the bank will be The will mail depositors checks for their insured funds next according to a release from the Georgias Department of Bankingand Finance. Until then, depositors will not have access to their moneyvia ATMs, checks or the bank’es Web site. As of first quarte 2009, the bank had $182.56 million in total deposits. The FDIC estimates $1.1 millioj in customer depositsare uninsured. Currentluy the FDIC guarantees upto $250,000 in depositsx per account.
Blairsville-based will act as the depositf agent for any federall funds customers would normally receive from the bank viadirect deposit, including Social Security and Veterans’ This is the secondr seizure without a buyer in Georgia since the banking collapse. was . Stockbridge-based bank failed in March and served as the deposit agent for federap money for customers in that Community Bank, like a growing catalog of failec Georgia banks, gambled heaviluy on residential real estate and lost. The bank was created at the beginnings of the home buyinh andconstruction boom, in 2003.
As of firstt quarter 2009, roughly one-third of the bank’s $129 million in totak loans were in some stage of default or hadbecome bank-owned By the time of the bank’es seizure, it had $27 million in foreclosexd real estate on its books, $11 million in loanzs that appeared unlikely to be repaid and only $7.3 millionm in equity capital to absorbv losses. The bank’s Texas Ratio or a comparison of its loan problems to itsequity capital, an industry metric created during the S& L Crisis to measure banks’ health throughout Texasw — was 294 percent at the end of firsr quarter 2009.
Most of the baker’s dozen bank failures in Atlant a had Texas Ratios in excess of 300 and is becoming a common indicator of bankz likely to be seized by The failure is expected to costthe FDIC’a hard hit insurance fund $81 million. Developing...