McIntosh State Bank Signs Agreement with Regulators

A cease and desist order has been signed by McIntosh State Bank, the Georgia Department of Banking & Finance and the FDIC to correct identified problems "in a good faith effort" in regards to the bank's concentration in residential real estate acquisition, development and construction loans. Pete Malone, chief executive officer, said the Jackson, Ga. bank has already met many of the order's requirements. "The bank has plans to raise additional capital to meet the terms of the agreement. This is in addition to the $3 million in capital injected by the bank's directors and executive officers in December 2008," said Mr. Malone. One of the biggest accomplishments in 2009, he said, was the company's ability to sell over $8.4 million of foreclosed real estate, he said. McIntosh State Bank also has an additional $1.5 million in real estate under contract. According to the company, many Georgia banks with significant concentrations of nonperforming assets are believed to be subject to some form of enforcement action. McIntosh State Bank has two banking offices in Henry County, one of the hardest hit areas in Georgia. "Because much of our bank's market is located in the South Atlanta region, we participated in the area's real estate growth and its subsequent slowdown. We are very focused on addressing our problems and working through them," said Mr. Malone.