Two more Georgia banks fatally hobbled by bad real estate loans were seized by federal and state regulators on Friday.
The failures of McIntosh Commercial Bank of Carrollton and Unity National Bank of Cartersville bring Georgia’s total to 37 since August 2008, more than in any other state. Three banks failed last week.
McIntosh Commercial, which had assets of $363 million, was taken over by CharterBank of West Point. The failure is expected to cost the Federal Deposit Insurance Corp.’s insurance fund $123.3 million.
Unity National, with assets of $292 million, was taken over by Bank of the Ozarks in Little Rock. The failure is expected to cost the FDIC $67 million.
McIntosh Commercial, founded in 2002, lost $28 million over the past two years and had $88 million in troubled loans on its books at the end of 2009. Its four branches in Carrollton, Newnan, Bremen and Covington will reopen Saturday as branches of CharterBank.
Unity National, founded in 1998, lost $15.7 million in 2009 and had $33 million in troubled loans at the end of last year. Its five branches in Adairsville, Cartersville, Rome and Calhoun will reopen on Saturday as branches of Bank of the Ozarks.
The FDIC agreed to cover most of the potential loan losses the acquiring banks may incur as part of the transactions.
The FDIC on Friday also said that it has stepped up regulatory oversight of four troubled Georgia banks: Sunrise Bank, Atlanta; Bank of Valdosta; Bank of Perry; and Peoples State Bank, Jeffersonville.
The FDIC told three of the banks -- Sunrise, Bank of Valdosta and Peoples State Bank – they had a matter of weeks to raise capital or find a buyer or merger partner. The three are all part of Capitol Bancorp of Lansing, Mich.
Experts say half to two-thirds of Georgia's 300 banks are under increased regulatory scrutiny. The regulatory orders do not mean the banks will fail or are near failure, though the banks must improve their capital levels and bank management practices.
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