Atlanta Business Chronicle

Two more Georgia banks are under regulatory oversight via “consent orders.”

Bank of Wrightsville, Ga., and Bank of Valdosta, Ga., both agreed to consent orders recently, placing them under the watchful eyes of the Federal Deposit and Insurance Corp. and Georgia Department of Banking and Finance.

Both banking companies are alleged to have engaged in “unsafe” and “unsound” banking practices, which both neither admit nor deny. Both have been ordered to have better participation of their boards of directors in bank affairs and to within 60 days retain management with “qualifications and experience commensurate with assigned duties and responsibilities” at the bank. Both must come up with written strategic plans and profitability plans, then regularly update authorities on their progress.

The banks also have been instructed to maintain better TIER 1 capital ratios. Bank of Valdosta must keep its TIER 1 capital at 9 percent of its total assets and its total capital at 12 percent of its risk-weighted assets. Bank of Wrightsville must keep its TIER 1 capital at 8 percent of total assets and total-risk-based capital at least 10 percent of total risk-weighted assets.

Both banks also have been banned from paying dividends without approval from regulatory authorities.

Click here to read the consent order for Bank of Valdosta.

Click here to read the consent order for Bank of Wrightsville.