The beleaguered banking industry continues to struggle in Georgia, but there may be signs of some stability.
In the Barrow-Jackson County area, three community banks landed on a recently published list of troubled Georgia banks with high “Texas ratios” above 100. But one local bank fell off that list from a year ago, a sign that perhaps stability may be taking hold in the industry.
First Commerce Bank, also known as First Covenant Bank, saw its Texas ratio fall from 110 in March 2009 to 95 in March of this year. While the bank had a loss of $590,000 in the first quarter, its troubled asset portfolio fell from $18.3 million in March 2009 to $15.1 million in March 2010.
But three other banks in the area were on a list of some 78 banks in the state with ratios above 100. Over 400 banks nationwide have troubled ratios.
First Georgia Banking Company had a ratio of 138 in the first quarter of 2010, up from 54 a year ago. While the bank saw growth in both assets and deposits, it lost $1 million in the first quarter and saw its troubled assets climb from $39.5 million in March 2009 to $64.6 million in March 2010. Although based in Northwest Georgia, the bank has branches in Jackson and Banks counties and other Northeast Georgia locations.
Hometown Community Bank of Braselton also continued to be on the state’s troubled bank list with a Texas ratio of 224 in March, up from 144 a year ago. While the bank’s assets and deposits both saw growth between March of 2009 and March 2010, its troubled assets grew from $14 million last year to $20 million in March 2010. Like many other banks in the area, it also had a loss in the first quarter of $397,000.
The Peoples Bank, headquartered in Winder and with branches in Barrow County, Athens and Braselton, also remained on the high Texas ratio list in March with a number of 232, up from 64 a year ago. While the bank has set aside nearly twice as much funds this year for loan losses than a year ago, it also saw its troubled assets climb to $55 million from $26.7 million in March 2009. The bank had a first quarter loss of $1.7 million, three times its loss in the first quarter of 2009.
Three area banks have failed since the recession began, the largest being Community Bank & Trust, which failed earlier this year. Last year, Freedom Bank based in Commerce and First Piedmont Bank based in Winder failed. All three banks were taken over by other institutions.
Other banks have left the market or curtailed operations in the area in the wake of the housing bust and others have heavy foreclosure properties they are dealing with. Newer banks, however, appear to have missed much of the downturn and remain strong based on March financial reports.
You act like ole George Bush never existed....did you notice we had 2 recessions during his 8 years in office,,,,oh yes start a war the american tax payer will sign the check....you red state people are really full of your self-rightious pride...wonder why Banks County Ga. is struggling so now???