A large Savannah-area bank has come out from under heightened scrutiny by federal banking regulators. The Coastal Bank's emergence from a federal consent order highlights a broader recovery in the state's banking industry. The number of late loan payments in Georgia has gone down by half since last year.
Regulators say they have closed banks in North Carolina and Georgia, bringing the number of U.S. bank failures to 12 this year. The Federal Deposit Insurance Corp. on Friday seized Pisgah Community Bank, based in Asheville, N.C., and Sunrise Bank, based in Valdosta, Ga.
A metro Atlanta bank is being fined $25,000 by federal authorities who say the bank discriminated against borrowers by publishing marketing materials exclusively in Asian languages. The bank did not admit to any violations by consenting to the fine.
Regulators say they have closed banks in Georgia and North Carolina, bringing the number of U.S. bank failures to 10 this year. The Federal Deposit Insurance Corp. on Friday seized Douglas County Bank, based in Douglasville, Ga.
The federal government is working to wind down the bank-rescue called the Troubled Asset Relief Program. Three Georgia banks have repaid the government’s investment, but roughly two dozen still have not. And 2011 was a rough year for Georgia banking, with regulators shuttering 23 institutions, the most in the nation.
Federal regulators are suing 11 insiders at a failed Georgia bank, accusing them of gross negligence. The Federal Deposit Insurance Corp. accuses the executives and directors of Alpha Bank & Trust, in Alpharetta, of sloppy lending practices. The Atlanta Journal-Constitution reports the lawsuit seeks $23.9 million in damages.
Federal banking regulators want former officials of Atlanta-based Silverton Bank to pay $71 million in damages following Georgia's largest bank failure. Silverton went belly up two years ago. Now, the Federal Deposit Insurance Corporation alleges, former bank officials followed lax lending policies and bought lavish airplanes and posh buildings while their bank verged on collapse.
The proliferation of bank failures in Georgia has drawn the attention of Congress. The House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit will host a hearing in Newnan on Aug. 16. U.S. Rep. Lynn Westmoreland says the hearing will focus on the impact regulations may be having on community banks.