Former Ga. bank CEO banned; two more banks under scrutiny

By J. Scott Trubey

The Atlanta Journal-Constitution

The former top officer of a Villa Rica bank has been banned by federal regulators from banking, and two other Georgia institutions have fallen under additional scrutiny.

S. Pope Cleghorn Jr., the former president and CEO of Hometown Bank of Villa Rica, consented to a prohibition order from the FDIC. Cleghorn, in agreeing to the order, did not admit or deny any wrongdoing.

The alleged acts are not detailed in the three-page order released Thursday. The FDIC, however, said Cleghorn’s actions “demonstrate [his] unfitness to serve” as a bank director or officer, and he may not participate in the affairs of a bank without written authorization from regulators.

Hometown Bank and its parent company, GB&T Bancshares Inc., were acquired by Atlanta-based SunTrust Banks Inc. in a deal finalized in 2008.

Messages left for Cleghorn were not immediately returned.

Two more Georgia banks also recently fell under the scrutiny of bank regulators.

First Intercontinental Bank of Doraville received a “consent order” Nov. 23, according to a release Thursday by the FDIC.

First Georgia Banking Co. of Carrollton notified shareholders this month that it, too, had received a consent order from its regulators. First Georgia’s order, according to the shareholder letter, was issued in August.

Banking experts say at least half of the state’s banks are under some form of regulatory order. The censures, which vary in scope and severity, are designed to correct flaws regulators have found in banks’ operations.

First Intercontinental was ordered to increase the involvement of its board, have or retain qualified management, retain a compliance officer and develop a system to ensure compliance with consumer protection laws.

A message left with a senior bank executive was not immediately returned.

The order makes reference to undisclosed violations of the Equal Credit Opportunity Act and Federal Reserve Board Regulation B, which prohibit discrimination against credit applicants.

First Intercontinental neither admitted nor denied regulator allegations, according to the order.

First Georgia, in a letter to shareholders, said its agreement with regulators calls for the bank to increase board participation, “eliminate or substantially reduce” certain problem loans, restrict new credit to delinquent borrowers and submit a plan to raise investor cash.

In a letter to First Georgia shareholders dated Dec. 15, bank Chairman George B. “Bo” Hamil Jr., said the bank has  enacted many of the requirements of the order and the board is “committed to full compliance.” Messages left with bank officials were not immediately returned.