Federal regulators have given Neighborhood Community Bank in Newnan 30 days to shore up its capital by issuing stock or taking other drastic measures, such as being acquired by another bank.
The U.S. Federal Reserve issued the order, known as a "prompt corrective action," on May 14. It was made public Thursday.
In March, the Federal Reserve determined the bank to be "undercapitalized." The bank's initial plan to boost its reserves was rejected by regulators.
Like many small banks, Neighborhood Community bet heavily on the real estate market and suffered big losses when the housing market collapsed.
The bank, founded in 2000, lost $3.4 million in the first quarter, according to data from the Federal Deposit Insurance Corp. The bank reported $34 million in nonperforming loans in the quarter.
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