News

Gordon bank hit with ‘cease and desist’ order

The Federal Deposit Insurance Corp. has ordered a midstate bank to raise capital, clear bad loans off the books and improve lending practices.

The Gordon Bank in Gordon, a Wilkinson County town about 20 miles from Macon, was one of four Georgia banks hit with “cease and desist” orders in mid-April to early May. The FDIC only recently announced the actions.

The other banks are Community Bank & Trust in Cornelia; Crescent Bank and Trust in Jasper; and Farmers & Merchants Bank in Lakeland. In the orders, the FDIC and Georgia Department of Banking and Finance state they “had reason to believe the (banks) had engaged in unsafe or unsound banking practices.” The Gordon Bank also had a “large volume or poor quality loans,” according to the order.

Efforts to contact the bank Wednesday afternoon for comment were unsuccessful. The bank closes at noon on Wednesdays.

In the past year, 14 Georgia banks have been shut down by regulators, more than in any other state, including two last Friday. The depressed real estate market is largely blamed for the state’s banking woes.

  Comments