Profitability fell year over year at Georgia's community banks and thrifts in the second quarter but continued to outpace the Southeast and the nation as a whole.
The median return on average equity for Georgia's banks and thrifts with less than $10 billion in assets was 9.97% in the second quarter, compared to 9.30% for all Southeastern community banks and 9.59% for all U.S. community banks. Meanwhile, the median net interest margin for the state was 4.27%, higher than the Southeast median of 3.96% and the U.S. median of 3.84%.
Georgia's nonperforming assets ratio improved by 16 basis points year over year to 1.02% as of June 30 but was higher than the Southeast median of 0.82% and the national median of 0.63%.

Atlanta-based Atlantic Capital Bank NA became Georgia's largest community bank under $10 billion in assets after fellow Atlanta native, Fidelity Bank, and its parent company, Fidelity Southern Corp., were acquired by Moultrie, Ga.-based Ameris Bancorp on July 1.
Both loans and deposits fell at Atlantic Capital Bank year over year in the second quarter after the company sold 14 branches in Tennessee and northwest Georgia to Nashville, Tenn.-based FirstBank in April. Along with the branches, FirstBank assumed roughly $598 million in deposits and $385 million in loans.

M&A activity has slowed in 2019. Through Aug. 28, only four whole-company or minority stake bank and thrift deals have been announced with a Georgia target, compared to eight deals announced over the same period in 2018. However, BB&T Corp.'s colossal $28.28 billion merger with Atlanta-based SunTrust Banks Inc., announced Feb. 7, is the 8th-largest U.S. bank deal of all time.

Georgia's banks and thrifts are cutting branches as more banking transitions online. During the second quarter, 34 bank and thrift branches were closed in Georgia, while only six were opened. Over the last 12 months to June 30, 103 branches were closed and 45 were opened.

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Click here for a spreadsheet containing results for all Georgia banks in the second quarter of 2019.
