FDIC issues order on CB&T; Habersham Bank under a state order

Posted by
Mike Buffington
Wednesday, July 1. 2009
Comments (0)
Two North Georgia banks that operate divisions in Jackson, Barrow and Banks counties are reportedly under “cease and desist orders” from banking regulators.

The FDIC released a 29-page “cease and desist” order last Friday against Community Bank and Trust that was dated May 11. CB&T is headquartered in Cornelia and operates multiple divisions in Northeast Georgia, including Barrow and Jackson counties.

On Monday, Habersham Bancorp, based in Clarkesville, announced it had signed a less severe “cease and desist” order with the Georgia Department of Banking, according to Reuters. Habersham Bank operates a branch in Braselton, among other North Georgia locations. (Earlier reports misidentified the Habersham order as being with the FDIC rather than the state.) Habersham Bancorp president David Stovall said the bank is healthy and well-capitalized.

The CB&T order released last week slammed the bank’s board of directors and management, saying “the Bank had engaged in unsafe or unsound banking practices and had committed violations of law and/or regulations.”

Some sources from CB&T said that the problems are a result of lax loan practices primarily in Barrow County where the bank has offices in Winder, Bethlehem and Auburn.

But Barrow division president Randy Sims said the issues the bank faces are larger than just Barrow County.
“We’ve addressed all the issues here and company wide and feel good about where we’re headed,” he said. “We’re moving in the right direction.”

The 29-page FDIC order lists a long series of actions the bank will now have to take, including raising additional capital, reclassifying bad loans, and strengthening board and management practices.

For the full story, see the July 1 issue of The Jackson Herald, Barrow Journal, Commerce News or Braselton News.
Trackbacks
Trackback specific URI for this entry
No Trackbacks
Comments
Display comments as (Linear | Threaded)
No comments
Add Comment
E-Mail addresses will not be displayed and will only be used for E-Mail notifications
 
   
 
Submitted comments will be subject to moderation before being displayed.
 

Recent Stories

COLUMN: Figuring out the Wog
Tuesday, February 9 2010
Man arrested after he ‘barely bumped’ truck
Tuesday, February 9 2010
Girl Scouts holding new driver seminar
Tuesday, February 9 2010
Navigation units stolen from several vehicles
Monday, February 8 2010
Cordelia Akins
Monday, February 8 2010

Recent Comments from Top Stories

old testament about Pendergrass youth minister murdered Sun.
Wed, 13.01.2010 02:20
EYE FOR EYE AN TOOTH FOR A TOOTH
langston about CLICK here to see photos of Hoschton's world record scarecrows
Tue, 05.01.2010 20:54
Though it would be creepy at night, its really cool to create a world record, I would like to drive through and check things out but nop way at night time. GO HOSCHTON!!!!!
Copyright © 2008-2009 MainStreet Newspapers, Inc.