For the fourth time this year, a federally insured bank has failed. This time it was a financial institution out of the South.
On Friday, the
Georgia Department of Banking and Finance reported that it took possession of The Woodbury Banking Co.
The move was made by the regulator pursuant to the
Official Code of Georgia, Section 7-1-150(a), an announcement said.
According to the regulator, the code authorizes it to take possession
of any state-chartered financial institution when it is insolvent or operating in an unsafe or unsound condition to transact its business; is operating in violation of any court order, statute, rule or regulation; or requests the department take it over.
The Federal Deposit Insurance Corp., which was named receiver of the Woodbury, Georgia, bank, reports that
as of June 30, Woodbury had $21 million in deposits and $21 million in assets.
As of March 31, assets included
$7 million in commercial real estate loans.
The bank was founded in 1902 and had nine employees at the time of its demise.
Former Woodbury director and loan officer Walter Hynes Barnes was hit with a state consent removal and prohibition order last year.
“It was determined that Mr. Barnes, in his capacity as loan officer, approved loans that violated legal lending limits, and thereby engaged in unsafe and unsound practices in connection with the bank,” the state regulator said.
United Bank agreed to assume all of the failed bank’s deposits and acquire $18 million of its assets.
The FDIC expects to deplete its Deposit Insurance Fund by more than $5 million as to cover insured losses from Woodbury — the fourth bank failure this year.
Including banks, credit unions and non-bank mortgage firms, Mortgage Daily has tracked the demise or closing of 25 mortgage-related businesses so far this year.
