FDIC ups cease-and-desist orders in Ga. - Atlanta Business Chronicle:

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The banks, concentrated primarily in metrpo Atlanta, entered into cease-and-desist orders with the an agreement that stipulatexs how the bank must overhaulits business, or face The seven orders are the most issued in a single month by the FDIC in Georgia since the start of the banking crisis last indicating the regulator is ramping up the long-awaitedx consolidation of the industry through increased oversight and outrighty bank seizures. Each of the banks are state throughthe , which also enteredc into the agreements. The orders were issue d throughout April, according to the FDIC’s release, and made publivc early Friday.
Georgia’s 11 bank failureas to date have predominantlybeen state-chartered institutions that were swampefd by bad real estate lending bets when home salesd soured, beginning in 2007. Four banks that received the ordersz were subsidiariesof Macon-based , one of the state’s five largest banks with $2.7 billion in tota assets: Woodstock-based , Suwanee-based , Macon-based and Gray-basedr .
The parent company had previously announceed five of its six subsidiaries are subject tothe orders, noting its subsidiaries were described as undercapitalized by regulators, and would need to raisd additional capital and overhaul the banks’ business models to comply with the The only Security Bank that is subjecft to a cease and desist not mentioned in the FDIC’xs release is Security Bank of Houstonb County. The three other banks subject to the agreements are smalkcommunity banks, including: Jonesboro-based , Ellijay-based and in Dallas.
The provisionx for each bank aregenerallyt similar, requiring an overhaul of management raising additional capital and curbing “unsafre and unsound” business practices. The banks, for are barred from extending credit to any borrowetthat “would be detrimental to the best interests of the and must reduce the available credit for certain undiscloseed borrowers. Each of the banks, like many of their states counterparts, reported rising real estatr loan problems throughout the first quarterof 2009. Georgia Heritager reported 23.9 percent of its $55 milliojn loan portfolio is in some stagre of delinquencyor default, well above the state averagde of 7.4 percent.
Community Capital Bank reportecd a problem loan ratioof 18.8 and Appalachian Community reported a problen loan ratio of 13.9 percent.