Last week's lone bank failure was caused in large part by the institution's volume of commercial and residential nonperforming loans.
According to Trepp LLC, commercial real estate loans accounted for 62% of Community Bank of Rockmart's $9.5 million in nonperforming loans in the third quarter. State regulators closed the Rockmart, Ga.-based bank last week, the Federal Deposit Insurance Corp. reported.
Trepp, which included the bank on its "watch list" for the previous eight quarters, says that over just half of the nonperforming were commercial mortgages, while construction and land loans comprised 10.9% of the bank's nonperforming loans.
Residential nonperforming loans accounted for 34.3% of the total nonperforming loans, Trepp says.
According to the research firm, Georgia ought to brace for more closings. Trepp says there are still 43 banks in the state that are at high risk of failure.
