A small Georgia thrift will take the biggest hit announced so far in the Bennett Funding debacle. Flag Financial Corp. said it would take a $2.3 million charge against earnings and post third-quarter loss.

Flag Financial, the holding company for First Federal Savings Bank of La Grange, last week classified the recovery of $4.5 million in Bennett leases as "doubtful." It also downgraded to "substandard" $5 million in loans serviced by Resort Funding Inc., an affiliate of the bankrupt leasing company.

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