Officials say not to worry about 'troubled banks' - | Chattanooga News, Weather & Sports

Officials say not to worry about 'troubled banks'

Paul Shahen
Eyewitness Reporter

Ringold, GA (WRCB) -- Five small Georgia banks have been added to the list of those needing to improve their finances and operations.  Yesterday, we told you two of those are local.  The First Bank of Dalton and The Northwest Georgia Bank in Ringgold.

     The list is leaving customers wondering if they should be worried.  The FDIC has added 5 Georgia banks to the list of troubled banks.  Some more serious cases than others, but there's no way to find out without doing a little research.  In the case of the Northwest Georgia Bank, the front office says there will be no changes, and your money is safe.

     Each year the f-d-i-c, makes a list of banks that need to improve their current financial situation.  Here's the important part; no banks situation is the same.  Some are a lot more serious than others.  Most situations are fixable.

     Scott Smith president of Northwest Georgia Bank says they are not one of those serious cases, "it takes about, 20 seconds for folks to understand, we are open for business and safe and sound."

     Since Channel 3 made the FDIC list public, Smith a former FDIC employee, has had to re-assure many customers like Jeanette Willbanks, that her bank isn't going anywhere, "I was a little disturbed because I know it's the first time they've had any problems. But I think it's something they've had to work out fairly easily."

     According to Smith... Jeanette is right.  The problem came from a 2008 inspection, where Northwest Georgia Bank fell victim to the mortgage crisis.  The bank had too many bad loans out.  Since then they've been working on selling off those bad loans.

     "We're a reflection of that community," says Smith, "when our community has problems, we have problems. When our community's doing great, we're doing great."


     Smith also told us, because they've almost sold all of their bad loans, the future of the bank looks great.  And they have plenty of cash on hand.   "We have excess above what they call well capitalized. They also want us to maintain liquidity, we have excess liquidity. We have more liquidity than we probably have in the history of our 105 years in business."

Powered by Frankly