Security Bank Now Under Regulatory Oversight

The Federal Reserve is keeping a close watch on Georgia's fourth largest bank as the government tries to prevent another closure.
Macon-based Security Bank is already under a cease and desist order from the Federal Deposit Insurance Corporation. The just imposed regulatory oversight means the bank will have to submit a plan to the FDIC within the next 60 days on how to strengthen its position. In the last eighteen months the bank lost 226-million dollars.
Security bank's Tom Woodbery says their challenges are not unique, but have been with them for several months.

"The challenges are quality of loans, capital stability and liquidity and those three areas are problems that a number of banks in Georgia and the Southeast are facing because of the economic crisis we're in today."

In March auditors expressed quote, "substantial doubt" about the bank's ability to stay in business. Security Bank moved into the Atlanta market during the height of the housing boom.