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Friday, August 28, 2009 - 10:32am

Ga. Banks Losing Money

Georgia is home to a quarter of all bank failures across the nation. Now, according to new data from the Federal Deposit Insurance Corporation, Georgia's commerical banks are continuing lose money.

Nearly 60 percent of all commercial banks in Georgia failed to make a profit in the second quarter of this year, according to the FDIC report.

That's compared to 2007, when only 10 percent of the state's commerical banks did not make a profit.

David Oliver of the Georgia Bankers Association said the results were expected.

"Banking performance is always kind of a lagging indicator with the economy. And we all know that Georgia's economy has not improved by any significant measure in the last quarter," Oliver said.

The state's real estate and housing market will have to improve in order for Georgia's banks to get out of the red, Oliver added.

Nationwide, a quarter of commercial banks are not turning a profit.