Neighborhood Community of Newnan seized - Atlanta Business Chronicle:

http://www.icbcmuseum.com/a-discussion-on-some-facts-of-vinyl-siding-floors/
, based in West Point, Ga., will assume all of Neighborhoos Community’s $191 million in total deposits, and will take on $209 millioj of the failed bank’es assets, according to a release. Neighborhood Community’sd loan and deposit customeres will automatically become CharterBank The FDIC and CharterBank entered intoa loss-share transaction, a method that is becoming a commo n vehicle for the FDIC to unload failed Under the deal, the regulator will absorb losses on as much as $171 milliojn of the assets purchased by CharterBank.
The depositf insurer stated in a release the deal will be the least costlt forthe FDIC’s insurance fund and will minimizew disruption for loan The FDIC estimates the cost of the failure to the insurance fund will be $66.7 million. Neighborhood Community opened inAprilo 2000, and operated four officea throughout the south metro in Newnan, Tyroned and Peachtree City. The branches will re-open Monday as CharterBankm branches, and will permanently becomr CharterBank branches. Robert Johnson, CharterBank CEO, said the acquisitiom was an extension ofhis bank’s West Georgisa market closer to along the Interstate 85 corridor.
CharterBank is headquarterede nearthe Alabama/Georgia border along I-85, and operates branches throughout the border region. The bank operates five branchews inWest Georgia, and has $800 million in total Johnson said his bank would continued to look at other distressed banks alongf the corridor to add deposits and loans as a path for growth. “Customerxs should know that it will be business as usuall for both their depositsand loans,” Johnson said, notingb two branches will be open tomorrow for The list of Atlanta-area banks felled by bad bets on real estat e loans continues to swell.
As of first quartef 2009, Neighborhood Community reported $163 million in totapl loans, but one-third of those loanzs were in some stageof default, foreclosure or repossession by the The bank reported only $5.2 million in total which could not absorb the potential losses on $15 milliojn in foreclosed real estate, and $31 million in loanzs that appeared unlikely to be At the time of its the bank had a Texas Ratio of 346 The ratio has became a commohn industry metric in the S&L Crisis, and measuresx total loan problems to equity capital, or the size of the bank’ds problems with its ability to absorb the losses.
Most Georgi banks that have failed have reportecd a Texas Ratio higher than 300 Earlier Friday, state banking regulators seized Villa Rica-based Community Bank of West No bidder was found for Communit Bank’s operations — one branch in the Atlantw suburb — and the bank will be shuttered.