Georgian Bancorp. Inc., the second-biggest bank based in Atlanta, is still seeking to raise at least $25 million after a tenfold jump in bad loans in six months, Chief Executive Officer John Poelker said Wednesday.
"We felt along with most people that the real estate situation in Atlanta would have begun to correct itself by the summer of 2009," Poelker said in an interview. "Nobody expected this downturn in real estate to be as widespread and deep as it turned out."
Georgian had $306.4 million in nonperforming loans as of June 30, compared with $28.4 million at the end of 2008, according to Poelker.
Of its $1.77 billion of total loans, $1.36 billion were for property.
The capital raising, announced in May, will target private-equity firms or other institutions, a shift from earlier plans to seek funds from shareholders and local investors, Poelker said.