Newnan Coweta Bancshares Inc. signed a written agreement with the Federal Reserve Bank of Atlanta and Georgia state regulators requiring it to submit a conflict of interest policy, improve board oversight and underwriting standards, and maintain its capital position, the Fed said Wednesday.
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Newnan Coweta, the holding company for the $240 million-asset Neighborhood Community Bank in Newnan, Ga., has 60 days to submit the conflict of interest policy, which must focus on the granting of credit to insiders.
Neighborhood Community has lost money for three consecutive quarters. In the second quarter of this year it lost $809,000. Its ratio of nonperforming loans to total loans bloated to 12.48% in the quarter, compared with 0.99% the year earlier.
