A small bank based in Jackson was closed Friday by regulators, the 13th bank failure in Georgia this year.
McIntosh State Bank was seized and sold to Hamilton State Bank of Hoschton, according to the Federal Deposit Insurance Corp. The four branches of McIntosh State will reopen Saturday under their new flag, the FDIC said.
Sixty-four banks have been seized in Georgia since mid-2008, more than any other state.
McIntosh State had $339.9 million in assets and $324.4 million in deposits as of March 31, according to the FDIC. Hamilton State acquired all deposits and the bulk of the failed bank's assets in a loss share transaction with the FDIC.
The FDIC estimates a loss of $80 million to its insurance fund, which protects customer deposits.
McIntosh State is the first bank to fail in Georgia since May 20, when First Georgia Banking Co. and Atlantic Southern Bank were closed and sold to new owners.
McIntosh State opened in 1964 and served the once-booming Southside of Atlanta. It also funded real estate development around Lake Oconee from a branch that was closed in 2009.
In 2009, regulators and the bank entered into a cease and desist order to improve the bank’s management and operations, as well as to raise investor cash.
Like most of Georgia’s failed community banks, McIntosh State’s loan portfolio was heavily weighted in real estate, including loans for land purchase and development and commercial real estate. But the bank aggressively shrank its loan book as the real estate market soured.
Problems started to appear in late 2007, and by March 2008 more than 8 percent of the bank’s assets were either delinquent, no longer paying or foreclosed, according to an analysis of FDIC data. That figure grew to 22.2 percent two years later.
More than 40 percent of McIntosh State’s assets were delinquent, in default or foreclosed at the end of first quarter this year, according to an analysis by FIG Partners in Atlanta.
The bank lost $37.4 million from 2008 through March of this year.
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