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11-15-10 Local Banks and Troubled Assets Ratios – Part 2

First American Bank and Trust is healthy and from June 2009 to June 2010 showed tremendous growth in deposits and assets. It has actually grown during the bank crisis.



November 14, 2010


Local Banks and Troubled Asset Ratios – Part 2


By Wendell Dawson, Editor, AVOC, Inc


First American Bank and Trust is healthy and from June 2009 to June 2010 showed tremendous growth in deposits and assets.It has actually grown during the bank crisis.  During that 12 month period, FABT’s deposits grew from $ 190,033,000 to $ 288,789,000!.


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First American Bank and Trust Company –Troubled Asset Ratio 6-10


Financial details for First American Bank and Trust Company

Line item

June 30, 2009

June 30, 2010


$ 373,553,000

$ 473,309,000


$ 190,033,000

$ 288,789,000


$ 201,197,000

$ 247,809,000

Loan loss provision

$ 294,000

$ 1,451,000


$ 2,013,000

$ 1,037,000


$ 40,630,000

$ 42,049,000


$ 2,495,000

$ 5,316,000

Loans 90 days or more past due

$ 100,000

$ 35,000

Non-accruing loans

$ 4,235,000

$ 7,637,000

Other real estate owned

$ 987,000

$ 2,633,000

Capital plus reserves

$ 43,125,000

$ 47365,000

Total troubled assets

$ 5,322,000

$ 10,305,000


3 more Georgia banks added to high-risk list – AJC – 11.9.10



     The number of troubled banks in Georgia grew slightly in the third quarter along with the percentage of problem loans statewide, according to two reports this week on state banks.

…. Georgia leads the nation in bank failures with 46 since 2008. Sixteen Georgia community banks have failed so far this year.

     A report by Sterne Agee & Leach shows the number of banks with troubling Texas ratios— a measure of troubled loans to cash reserves -- grew by three to 79 during the third quarter. That was despite the failure of seven banks since June 30, removing from the troubled list.

    A score above 100 shows a bank has more loans delinquent, in default or in foreclosure than it has cash reserves. The ratio is a non-regulatory measure used by analysts………….

……..Fourteen of the Top 20 Texas ratio banks nationally are based in Georgia, according to Sterne Agee data. That’s one more than in the second quarter.

Texas Ratio list

     The Texas Ratio compares problem and foreclosed loans and cash reserves. A score above 100 shows a bank has more loans delinquent, in default or in foreclosure than it has cash reserves. The ratio is a non-regulatory measure used by analysts. Here are the Georgia banks with scores over 100.


(Source: Sterne Agee & Leach)

Bank/Texas Ratio


Chestatee State Bank--1,085

Enterprise Banking Company--1,037

Montgomery Bank & Trust--907

North Georgia Bank--755

Habersham Bank--681

Oglethorpe Bank--647

American Trust Bank--590

First State Bank--582

Security Exchange Bank--563

Douglas County Bank--539

Darby Bank & Trust Company—521Closed by FDIC on 11-12-10

United Americas Bank, National Association--514

Mountain Heritage Bank-- 507

Patriot Bank of Georgia--457

McIntosh State Bank-- 449

First Choice Community Bank--438

New Horizons Bank-- 413

Gwinnett Community Bank--389

Citizens Bank of Effingham--373

Park Avenue Bank--365

Atlantic Southern Bank--350

CreekSide Bank--347

High Trust Bank--334

Piedmont Community Bank--325

Community Bank of Rockmart--309

Providence Bank--300

First Cherokee State Bank--297

Tifton Banking Company—292Closed by FDIC on 11-12-10

Farmers & Merchants Bank--289

Bartow County Bank-- 281

Decatur First Bank-- 265

First Citizens Bank of Georgia-- 260

Georgia Trust Bank-- 251

Peoples Bank-- 250


Failed Ga. banks face FDIC threat –AJC – 11.13.10


   Experts predict lawsuits to begin in state, with eye on Haven Trust

   The state’s banking crisis has raged for more than two years, but the expected wave of failed bank litigation is only just beginning.

    The FDIC has filed civil suits in two failures in other states, and Georgia banking experts and recent court activity suggest the bank regulator is preparing for cases here.

    The Federal Deposit Insurance Corp.’s board has given the green light for lawsuits against at least 70 people nationwide for alleged misconduct such as fraud and breach of fiduciary duty.

    It appears some insiders at a failed Gwinnett County bank could be among them.

Lawyers for the FDIC said in a Nov. 1 court filing the regulator “has authority to file suit” against an unknown number of former bank directors and ex-officers of Duluth-based Haven Trust Bank…….



The Collapse of a Community Bank - TIME - 10.21.10



Bank of America delays foreclosures in 23 states – AP – 10-1-10


Banks in danger of failing 10.24.10



Frequently Asked Questions


"What are your top 10 banks in danger of failure?"
We're constantly updating our list as the banks we identify continue to fail. As of September 21, 2010, the top ten banks in danger of failure are:


  1. Montgomery Bank & Trust, Ailey, GA
  2. The Gordon Bank, Gordon, GA
  3. Hillcrest Bank, Overland Park, KS
  4. North Georgia Bank, Watkinsville, GA
  5. American Trust Bank, Roswell, GA
  6. Habersham Bank, Clarkesville, GA
  7. The First State Bank, Stockbridge, GA
  8. First Bank of Jacksonville, Jacksonville, FL
  9. Sterling Savings Bank, Spokane, WA
  10. Family Federal Savings of Illinois, Cicero, IL

2008-2010 Bank Failures List



Georgian Bank shareholders sue ex-CEO, chairman –AJC – 7.27.10



A group of investors in the parent of Georgian Bank have filed suit against two former top officials claiming they failed to disclose important information about the bank’s condition before it spiraled out of control and was shut down in September 2009.

The suit filed July 22 in Fulton State Court claims Gordon Teel and Lynn Darby “negligently misrepresented” Georgian’s financial condition in the months before regulators closed the Atlanta-based bank. Teel is a former chairman of Georgian Bancorporation and was the bank's president and CEO. He resigned in July 2009 and was replaced as chairman by Darby.

The shareholders lost their investment the day the bank failed. They are seeking unspecified damages and attorneys’ fees.

…..The shareholder suit is one of the few filed so far in Georgia against the directors or officers of failed banks. Many more are expected as investors seek to recoup losses from Georgia’s banking crisis.

     The Federal Deposit Insurance Corp. is also contemplating legal action against leaders of some failed banks, in part, to recoup the fund that acts as a security blanket for consumers.


For other ratings, see:



BauerFinancial Star Ratings of Banks in NEGA.pdf x


2-16-09 Banks struggling – Local Banks on list of GA challenged banks


12-6-09 Oconee State Bank makes progress in 3rd Quarter


     Most banks carry corporate liability insurance, but the coverage is often much less than the hit the government and investors feel from a failure. Georgian's failure cost the FDIC’s fund nearly $ 800 million.


2008-2010 Bank Failures List



2008-2010 Bank Failure Map