McDonough-based FirstBank Financial Services was seized by the Federal Deposit Insurance Corp. today, and the bank was taken over by Regions Bank.
From the Atlanta Business Chronicle:
Walt Moeling, Bryan Cave Powell Goldstein LLP banking attorney and counsel for the bank, said the failure was due to a combination of market forces and over-concentration in residential real estate lending.
"This is a case of the economy overwhelming the bank," Moeling said.
The slowdown in residential construction, particularly for FirstBank’s Henry County and south metro business area, has been acute and reflected in a souring balance sheet for the bank throughout 2008….
The bank owned $105 million in problem construction and development loans, as of fourth quarter 2008…
The move also marks the second local purchase by Regions Financial, which added five branches in north metro Atlanta through the buyout of seized, Alpharetta, Ga.-based Integrity Bank in August 2008.