Trepp, LLC, a real estate research firm released a report last week that Georgia houses the most banks with a high risk of failure. This means that of the 200 at risk banks on Trepp's list a quarter of them are in Georgia and all of them have been on the list for at least a year.
Although the report doesn't disclose which banks are on the list, it does congratulate itself that Mountain Heritage Bank, McIntosh State Bank and Atlantic Bank and Trust (which had an office on East York Street) all failed and were also on their Watch List.
The good news is that the "loss severity eased very slightly in June" and that "the pace of closures continued to moderate". The loss severity is lower because the failed banks are small with a median assest size around $200 million.
As I've written before in prior blogs, Georgia has too many banks due to a previous and unofficial "open door" policy by the Department of Banking and Finance. No one wants to see a bank close and the FDIC take a loss. But it is an essential part of the economic recovery and the FDIC will also share in the recovery of non-performing loans due to loss sharing agreements.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
Although the report doesn't disclose which banks are on the list, it does congratulate itself that Mountain Heritage Bank, McIntosh State Bank and Atlantic Bank and Trust (which had an office on East York Street) all failed and were also on their Watch List.
The good news is that the "loss severity eased very slightly in June" and that "the pace of closures continued to moderate". The loss severity is lower because the failed banks are small with a median assest size around $200 million.
As I've written before in prior blogs, Georgia has too many banks due to a previous and unofficial "open door" policy by the Department of Banking and Finance. No one wants to see a bank close and the FDIC take a loss. But it is an essential part of the economic recovery and the FDIC will also share in the recovery of non-performing loans due to loss sharing agreements.
A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.
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