The new additions to the watch list of troubled Georgia banks comes as quarterly earnings reports showed further deterioration of the loan portfolios and capital positions of many already troubled banks. Industry watchers say more than a third of Georgia’s more than 300 banks are under some form of regulatory order.
Consent orders are considered less harsh than the cease and desist orders many Georgia banks have fallen under.
Consent orders are strong formal censure agreements between regulators and a troubled bank. Under the orders, banks do not admit fault, but must undergo a significant overhaul to satisfy regulators. Since the banking crisis began, dozens of Georgia banks have received cease and desist orders from regulators, often following a regulatory exam.
The FDIC news release posted yesterday (Dec. 28) concerning Northwest Georgia Bank is the result of an examination in 2008. Since that time, we have taken necessary actions to strengthen our balance sheet and put us back on track to profitability. We remain well-capitalized and have excess capital above the regulatory minimum requirements, while at the same time raising even more capital as required by the FDIC during these economic times.
We are confident that our current strategies will bring us back to profitability in 2010. We are now maintaining the most conservative strategy in our 105-year history, with plenty of excess liquidity and excess capital.
The most important point I want to affirm to our customers and the communities we serve is that we remain safe, sound and well-capitalized. We have served this community for more than a century and are extremely confident that we will continue to serve this community for another century and beyond.
If you have questions or concerns about the safety and soundness of this financial institution, please feel free to contact me, day or night, at ssmith@nwgb.com or 706-965-3000.
Thank you,
Scott Smith
President & COO
Northwest Georgia Bank