Georgia banks' troubled list shortens by two

“There are some signs of a little bit of hope on the credit side,” Chris Marinac, managing principal and director of research for FIG Partners, said. “But the companies that are struggling are going to be struggling further.”

The Texas ratio is a non-regulatory measure used by industry analysts, though some bankers consider it outdated.

Dan Oliver, chief executive of Vinings Bank, with a Texas ratio of 46 percent, said the general business climate is seeing small signs of improvement. But banks that had a high concentration of real estate loans are continuing to deal with those difficulties.

Marinac said despite the number of banks with high Texas ratios, he expects many to survive, at least for the near future.

“They’re going to limp along for a while,” he said. “A lot of banks with a high Texas ratio ultimately will not fail. There will be a fair amount of shotgun weddings. They’re going to be forced to sell.”

Bank of Ellijay, with a Texas ratio of 1050 percent, had the highest level in the state. In the first quarter, it was at 639 percent.

For the first time in eight quarters, Georgia banks saw a decrease in loans that had gone unpaid for fewer than 90 days. The  median for the state's banks was 1.6 percent in the second quarter. In the first quarter, it was  2.2 percent. Median capital levels at the state's banks also increased.

Four Georgia banks have failed this year, bringing the total to 41 since the financial crisis began -- the most in any state. Heavy concentrations of real estate loans have been the culprit in most of the failures.

Walt Moeling, banking partner at the law firm Bryan Cave,

said he expects between two and four failures a month through the end of the year, though he said some of the banks that appear to be the most troubled will likely survive.

“It’s a very, very steep hill to climb,” he said. “It doesn’t mean some of them won’t.”

Georgia banks with ‘Texas Ratios' above 100

Bank of Ellijay -- 1050

First Commerce Community Bank -- 864

First State Bank -- 634

Montgomery Bank & Trust -- 625

Gordon Bank -- 615

North Georgia Bank -- 565

American Trust Bank -- 554

Habersham Bank -- 506

Security Exchange Bank -- 491

Chestatee Bank -- 454

Gwinnett Community Bank -- 444

Oglethorpe Bank -- 426

Peoples Bank in Winder -- 400

Douglas County Bank -- 395

McIntosh State Bank -- 385

Mountain Heritage Bank -- 379

Sunrise Bank of Atlanta -- 368

Enterprise Banking Co. -- 365

Darby Bank and Trust Co. -- 346

Park Avenue Bank -- 331

Providence Bank -- 323

Atlantic Southern Bank -- 322

High Trust Bank -- 311

First Choice Community Bank -- 299

Patriot Bank of Georgia -- 290

First Cherokee State Bank -- 271

Piedmont Community Bank -- 268

Citizens Bank of Effingham -- 263

Bartow County Bank -- 261

First Citizens Bank of Georgia -- 250

Farmers & Merchants Bank in Lakeland -- 245

Peoples Bank in Conyers -- 243

United Americas Bank, National Association -- 235

WestSide Bank -- 228

CreekSide Bank -- 224

Capitol City Bank &Trust Co. -- 223

Tifton Banking Co. -- 218

Decatur First Bank -- 213

New Horizons Bank -- 211

Peoples Bank & Trust -- 211

Hometown Community Bank -- 210

Georgia Heritage Bank -- 209

Georgia Trust Bank -- 205

Northside Bank -- 200

Community Bank of Rockmart -- 195

Heritage Bank in Jonesboro -- 195

Community Bank & Trust -- West Georgia -- 195

First National Bank of Barnesville -- 194

Community Capital Bank -- 183

First Covenant Bank -- 178

Eastside Commercial Bank -- 178

Jasper Banking Co. -- 178

First Georgia Banking Co. -- 172

Bank of Georgia -- 168

PlantersFirst -- 163

Covenant Bank & Trust -- 157

Bank of Newington -- 157

One Georgia Bank -- 155

Piedmont Bank -- 153

Community Bank of the South -- 151

Legacy State Bank -- 151

Citizens State Bank in Kingsland -- 150

Central Bank of Georgia -- 150

Peach State Bank & Trust -- 139

Patterson Bank -- 137

Trust Bank -- 134

Cherokee Bank, National Association -- 134

Farmers Bank in Forsyth -- 134

First National Bank of Chatsworth -- 120

First State Bank in Wrens -- 119

First Chatham Bank -- 116

Bank of Wrightsville -- 111

Talbot State Bank -- 110

First National Bank of Griffin -- 108

Rabun County Bank -- 106

Bank of Perry -- 101