Georgia

As FSI Group LLC prepared to pour $40 million into Security Bank Corp. last year, it considered what it thought would be the worst-case scenario.

Though the seizure of Security Bank Corp.'s six banks did nothing to change Georgia's reputation as a failure hub, many are calling the resolution the best thing to happen to the state's banking market in years.

Though its nonperforming loans grew dramatically in the second quarter, Appalachian Bancshares Inc. in Ellijay, Ga., said Thursday that it expects to bring in enough capital to satisfy a regulatory order.

With loan trouble continuing to escalate, United Community Banks Inc. in Blairsville, Ga., swung to a $23.1 million operating loss in the second quarter, from a $7.1 million operating profit a year earlier.