Federal regulators have ordered a Gray bank to clean up its operations.
Piedmont Community Bank reported having $26.25 million in seriously delinquent loans at the end of September. The Federal Deposit Insurance Corp. ordered the bank a month ago to improve, and the bank agreed.
Piedmont entered into a consent order with the FDIC and the Georgia Department of Banking and Finance to perform certain functions, including assessing its management and staffing needs, maintaining adequate levels of capital, reducing the amount of troubled loans, reviewing its liquidity position weekly, and having its board increase its participation in the bank’s affairs.
The bank’s chief executive officer, Robert Drew Hulsey Jr., said in a statement that similar written agreements with banks are now common.
“It is a challenging time for our entire nation, and we are eager to work with the regulatory authorities in ensuring the safety and soundness of this institution,” Hulsey said. “The bank will continue to deliver excellent customer service in all facets of our operation.”
All deposits remain insured at the highest FDIC limits, Hulsey said.
In its latest statement to the FDIC as of the end of September, the bank reported that nearly 15 percent of its loans had soured.
The $26.25 million in noncurrent loans and leases are at least 90 days past due. In all, the bank reported about $247 million in liabilities and about $264 million in assets.
The bank had 33 employees this September compared to 44 employees at the same time last year.
The FDIC announced Monday the warning letter that went to Piedmont Community Bank also was sent to four other Georgia banks: First Bank of Dalton, Bank of Ellijay, Northwest Georgia Bank in Ringgold and High Trust Bank in Stockbridge.
The agreement with Piedmont was signed the last week of November.
In September, Piedmont’s shareholders agreed to take the needed steps to allow the bank to go private in order to save time and money.
The change means Piedmont would have less than 500 shares of publicly traded stock and therefore will not have to adhere to SEC regulations.
It will, however, report everything that it always has to other federal regulators, such as the FDIC and the Federal Reserve.
Piedmont Community was launched in Gray in 2002 and has offices in Macon and Forsyth.
To contact writer Mike Stucka, call 744-4251. To contact writer Linda S. Morris, call 744-4223.