20th Georgia bank closed by regulators
10/17/2011
Piedmont Community Bank in Gray, southeast of Atlanta, was closed by state regulators
on Friday, October 14. The institution had $201.7 million in assets at June 30 and was
rated E- (“Very Weak”) by Weiss at the time of failure. It had been rated in the E range
for the last eleven quarters and was first identified as “Weak” in June 2008. It reported
a loss of more than $8.2 million for the first six months of the year and had
below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%) ratios of 0.58% and 1.50%,
respectively. Nonperforming assets represented 13.9% of total loans.
State Bank and Trust Company in Macon, with assets of $2.8 billion and a Weiss
Financial Strength Rating of C+ (“Fair”), assumed the deposits of Piedmont Community Bank.
State Bank and Trust has strong risk-based capital of 35.34%, which is almost double the
industry average while nonperforming loans make up a moderate 4.33% of total loans. The
bank earned almost $17 million in net income for the six months ending June 30 for a ROA
of 1.25%, well above the industry average of 0.87%.