A Leesburg, Va., start-up bank that has fallen short of its capital-raising goals is selling its assets to Southern National Bancorp of Virginia Inc. in Charlottesville.

Last year the Christmas party for State Bank and Trust in Fargo, N.D., had a "Deal or No Deal" theme, with all the employees getting $1,000 to keep. At this year's party they got $1,000 to give.

Two companies — Lakeland Bancorp Inc. in Oak Ridge, N.J., and Green Bankshares Inc. in Greeneville, Tenn. — are warning of credit troubles that will affect fourth-quarter earnings.

During a year in which community banks have had little to cheer about, hundreds got some good news last week when Securities and Exchange Commission Chairman Christopher Cox told a congressional panel he is recommending yet another extension for small, public companies to comply with what is widely viewed as the most onerous provision in the Sarbanes-Oxley Act.

NEW ENGLAND

Shares of Macatawa Bank Corp. plunged in heavy trading Wednesday after the Holland, Mich., company disclosed that more than one-third of its residential land development loans have been classified "impaired."

Legacy Bancorp Inc. in Pittsfield, Mass., announced Tuesday that it would trim 5% of its staff and take a pretax charge of about $438,000 this quarter to pay for the severance expenses.

It has been an up-and-down year for start-up banks.

Community banks did not create the subprime mortgage mess that is leading to waves of foreclosures, but one prominent banker believes they can be part of the solution.

Shares of the struggling PFF Bancorp in Rancho Cucamonga, Calif., soared Tuesday after the Illinois bank holding company FBOP Corp. disclosed in a Securities and Exchange Commission filing that it is seeking to increase its stake in the $4.5 billion-asset PFF.

United Community Financial Corp. in Youngstown, Ohio, announced Monday that the Office of Thrift Supervision is delaying approval of a deal to acquire another Ohio thrift company until the agency completes its examination of United's thrift subsidiary, Home Federal Savings and Loan Co.

Atlantic Coast Federal Corp. in Waycross, Ga., has canceled its stock offering because of weak demand for its shares.

Even the picky S&T Bancorp Inc. in Indiana, Pa., is getting in on the dealmaking in its home state.

Credit Union Journal

The Independent Community Bankers of America is encouraging its members to think green.

A Virginia bank company formed for the purpose of buying community banks has struck its second deal before the first one has closed.

Seacoast Commerce Bank in Chula Vista, Calif., said it had hired Ronnie Zivanic to be its chief financial officer, succeeding Toni Flannagan who resigned Friday.

Midwest Banc Holdings Inc. said Friday that a current board member, Homer J. Livingston Jr., has been elected chairman of the holding company as well as chairman of Midwest Bank and Trust Co.

Another team of former LaSalle Bank lenders is joining Private Bancorp Inc.

Though much of the nation's financial press focuses on the economic fallout from troubled subprime mortgages, very positive developments have occurred in the loan market for lower-income workers and consumers — small-dollar consumer loans.