5:34 am June 27, 2011, by Henry Unger
Just in case you missed it, another Georgia bank failed late Friday. It was the 65th since the financial crisis began in 2008 — the most of any state.
AJC writer Arielle Kass reports that Mountain Heritage Bank in the north Georgia town of Clayton was closed by regulators — the 14th failure of a Georgia-based bank this year.
It was sold to First American Bank and Trust Co. in Athens, the FDIC said.
The bank, founded in 2003, had $103.7 million in assets and $89.6 million in deposits at two branches, Kass reports. The failure is estimated to cost the FDIC’s deposit insurance fund $41.1 million.
In 2009, after receiving cease-and-desist orders by regulators that June, Mountain Heritage Bank president Jim Wallis told the AJC he was trying to raise $2 million and shrink the bank’s balance sheet, Kass writes.
As with nearly every failed bank, Mountain Heritage bet heavily on real estate, Kass reports. Most of Mountain Heritage’s losses were on loans for construction of retirement homes and second homes, Wallis said.
Also in the AJC:
In other media:
- Henry Unger, The Biz Beat
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