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9-23-10 Bank Closings coming closer to home – Peoples Bank was Institution for 84 Years

Barrow and Oconee Counties got too loose with development and growth……. Our banks have suffered. Retired persons with savings are feeling the pain of ridiculously low interest rates. Recently, I was given an interest quote of 0.44% on a one year $ 50,000.00 Certificate of Deposit!

AVOC

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September 20, 2010

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Oconee State Bank ranking improved with Bauer Financial

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By Wendell Dawson, Editor, AVOC, Inc

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People’s Bank was big in Winder and Barrow County.   When I started my law practice 40 years ago, many clients came from the Dark Corner and Bogart area of Oconee County.   Many paid with checks on the People’s Bank.   It has been prominent in area financial circles for a long time.

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Oconee State Bank’s second Quarter report to the Securities and Exchange Commission dated August 16, 2010, was not as good as the first quarter report.   It showed losses. See Excerpts below.    Some observers feel that banks felt some boost with the homeowner tax credit but that stimulus has ended.Housing values and sales are down.   Foreclosures are up.    Some have described earlier increases as being like "a dead cat bounce". 

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Second Quarter FORM 10-Q.OSB.8.16.10.pdfx

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Reports in the media and sources to AVOC say the housing and banking challenges will probably get worse before improving.   Values are down and house refinancing is not a viable option.   Foreclosures by State Continue to Rise; Affect “Safe” Areas

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Barrow and Oconee Counties got too loose with development and growth.   They were overbuilt, primarily by Metro Atlanta large builders who have now moved on.As a result, the tax digest is overvalued and will not increase anytime soon.   Our banks have suffered.   Retired persons with savings are feeling the pain of ridiculously low interest rates.   Recently, I was given an interest quote of 0.44% on a one year $ 50,000.00 Certificate of Deposit!   We need to remember these facts at times of rezoning and elections.

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Fridays are anxious days for many banks on the challenged lists.   That is the day that State and Federal Banking Officials walk in and close a bank.   We can expect more foreclosures, short sales and bank failures – many “close to home”.

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Since AVOC’s September 6, 2010, article Oconee State Bank has gained a star (Now 2 Stars) on the BauerFinancial's Star Rating.   See List Below

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Banks Hold Off On Foreclosure Notices - CNBC 9-16-2010

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9-6-10 Many NEGA Banks are still feeling stress- as are many others in Georgia and the U S

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5-18-10 Oconee Financial Corp (Parent of Oconee State Bank) making progress with US SEC


Trio of Georgia banks join failed list –AJC -9-17-10

http://www.ajc.com/business/trio-of-georgia-banks-616022.html

…..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 $50,000.

……………It was too much real estate. Too much of one product type," FIG Partners bank analyst Chris Marinac said of the failures. That has been the common theme with Georgia's bank failures.

Friday was the first time multiple Georgia banks were closed on one day since March 26.

   Peoples Bank of Winder (not to be confused with similarly named institutions in Covington, Eatonton and Buford) was founded in 1926 by a group of Barrow County business leaders. It survived the Great Depression, which claimed four rival Barrow County lenders.

     Its president and CEO, Christopher Maddox, is part of a respected family of Georgia bankers. His grandfather helped found Peoples, and his father was a founder of the The Bankers Bank (later Silverton Bank). Maddox led Peoples Bank for more than a decade and also was named interim CEO of Silverton Bank shortly before May 2009 when it was the largest bank to fail in state history.

      Peoples Bank was a sleepy rural lender for much of its history. But Atlanta’s rapid suburban push and the housing boom helped the bank nearly quadruple in size to $20.7 million in assets by the end of 2008.

     Peoples Bank had $47.2 million in assets and $98.2 million in deposits at the time it was closed. Its cost to the FDIC fund is estimated at $1.4 million.

       Last January, the FDIC slapped Peoples Bank with a consent order criticizing its lack of board oversight, loan underwriting and portfolio management. By the end June 2010, a quarter of its assets were in some form of distress. It reported a $1.4 million loss for the quarter……..


WEISS BANK RATINGS on 9-20-10

http://www.weissratings.com/weakest-banks-and-thrifts-in-us.php

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Habersham Bank

Clarkesville

GA

436,189

E-

Mcintosh State BK

Jackson

GA

393,546

E-

National BK Of Georgia

Athens

GA

293,826

D

North Georgia Bank

Watkinsville

GA

173,635

E-

Oconee State BK

Watkinsville

GA

276,196

D-

Peoples Bank

Winder

GA

467,629

E-

Pinnacle Bank

Elberton

GA

602,364

D-

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BauerFinancial's Star Rating

http://www.bauerfinancial.com/btc_ratings.asp

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                        Oconee State Bank Star Rating on 9-20-10

STAR RATING   **

Oconee State Bank: Watkinsville,

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                        North Georgia Bank on 9-20-10

STAR RATING  ZERO

North Georgia Bank: Watkinsville,

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Peoples Bank of Winder on 9-20-10

STAR RATING. FDIC

Peoples Bank: Winder, GA



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