Peoples Bank fails; Carrollton bank to take ownership

The Peoples Bank, based in downtown Winder, was seized by the FDIC Friday afternoon. Photo by Jessica Brown

Peoples Bank fails; Carrollton bank to take ownership

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Monday, September 20. 2010

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The Georgia Department of Banking and Finance took possession of The Peoples Bank, Winder, Friday evening.

Through an agreement with the FDIC, The Peoples Bank will be acquired by Community & Southern Bank, Carrollton. It was one of five banks to fail in Georgia this week.

The Peoples Bank had total assets of $447.2 million and total deposits of $398.2 million.

The Superior Court of Barrow County issued an Order appointing the Federal Deposit Insurance Corporation (“FDIC”) as Receiver of the Bank effective upon the Department taking possession of The Peoples Bank.

The troubled bank is Barrow County's oldest and largest financial institution and has much of the local banking market share. The housing bust and economic downturn had hit the bank hard.

It is the fourth bank with connections in Winder to fail. Winder-based First Piedmont closed last year; Commerce-based Freedom closed its Winder facility in 2008; and Community Bank & Trust out of Cornelia but with a major Barrow County branch failed earlier this year. Like Peoples Bank, the other banks also had buyers.

Officials said all deposit accounts of The Peoples Bank have been transferred to Community & Southern Bank and will be available immediately. Depositors will be able to access their accounts at the former main office and branch locations of The Peoples Bank during regular business hours. Customers of both banks should continue to use their existing branches until Community & Southern Bank can fully integrate the deposit records of The Peoples Bank. Additionally, the former depositors of The Peoples Bank can continue to access their accounts through automated teller machine transactions, checks and debit transactions.
All deposits will be transferred to Community & Southern Bank and, therefore, it is not anticipated that there will be any loss exposure to former The Peoples Bank depositors that have deposits exceeding the FDIC Deposit Insurance amounts.

The Department’s Commissioner, Robert M. Braswell, reminds depositors that deposits of all Georgia banks are insured by the FDIC up to $250,000. Special rules are in place for accounts held in trust status and joint accounts that may further expand deposit insurance coverage. You can find additional information on FDIC Deposit Insurance at www.fdic.gov.

The FDIC has established a website and a toll-free phone number to answer questions from depositors, creditors and other interested parties regarding the receivership of The Peoples Bank. Please refer to the FDIC’s website for further information regarding the details of the purchase and assumption transaction. The website is www.fdic.gov and the toll-free phone number is 1-800-357-7599. The phone number is operational this evening until 9 p.m. Eastern Standard Time, on Saturday from 9 a.m. until 6 p.m. on Sunday from noon to 6 p.m. and thereafter from 8 a.m. to 8 p.m.

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#1 Anonymous on 09/17/10 at 06:11 PM [Reply]

If Charles Maddox was still at the helm, this would have never happened.

#1.1 Anonymous on 09/17/10 at 08:12 PM [Reply]

Chris Maddox did the best he could and so did all the staff at the peoples bank. This is a sad day in the chapter of Barrow county. But the president should not be blamed for the bank closing. As an employee of the former peoples bank. I will not hear people blame him. Blame the economy, blame obama but not CHRIS MADDOX!! The community closed the bank. The ones that did not pay their loans!! not CHRIS

#1.1.1 Anonymous on 09/18/10 at 12:26 AM [Reply]

Very ignorant and silly to blame Obama! How about Bush?

#1.1.1.1 Anonymous on 09/20/10 at 11:59 PM [Reply]

I will be praying for the maddox family each and every day, sometimes GOD allows things to happen for a reason. he will not put no more on you than you can bare. Put more of your trust in him and that little bit of millions will be nothing compared to what he CAN do for you in the future. GOD is now waiting on you to come to him with all you have, so that you can tell barrow co. where you came from,but LOOK at what GOD has really done for the great chris maddox.TRUST IN HIM AT ALL TIMES HE IS YOUR ONLY "PIECE MAKER".

#1.1.2 Confused on 09/18/10 at 12:43 AM [Reply]

I'm confused. How can people not pay their loans back when the bank has stopped loading money out to begin with? How does ANY bank survive for that matter? I'm not sure it was Chris's fault but it was NOT the community's

#1.1.3 Concerned Citizen on 09/18/10 at 04:29 PM [Reply]

What does Obama have to with the bank closing? The economy was bad before he came into office. So if you want to blame a political figure blame George W. or better yet blame your friendly neighbors who didn't pay on the loans that the bank was kind enough to loan them. Yes, Chris was wonderful CEO and everyone in the community knows that. As a community we need to pray because this is just the beginning of a domino affect that is going to start in Barrow County!!!

#1.1.3.1 Citizen on 09/18/10 at 09:18 PM [Reply]

Oh Lord people. Wake up! It wasn't primarily because of defaulted loans! The Peoples Bank tightened their underwriting years ago. Quit trying to turn the Maddox's into saints. Sure they are good folks but give me a break. The bank was run into the ground by POOR investments and shoddy deals with local builders and politicians. Peoples Bank rode the wave of foreclosures better than any other bank in town. That was NOT the reason the bank tanked. Quit blaming the community.

#1.1.4 Anonymous on 11/19/10 at 05:58 PM [Reply]

You are wrong, oh so wrong. The bank would not have failed if Chris had not taken it in a more risky direction.

#1.2 Citizen on 09/18/10 at 12:47 AM [Reply]

So I'm thinking the investments in Arizona by the genius's at Peoples Bank weren't that great of an idea, huh?

#1.3 Milburn Drysdale on 09/18/10 at 06:55 AM [Reply]

I wonder if old man Maddox will lose his membership in the Scotland golf club? Chris ran this bank into the ground with his Phoenix, Arizona ranch loans etc. I just hope that some of the Winder "blue bloods" go down the drain with him.

#1.3.1 Denise Tarver on 09/18/10 at 02:14 PM [Reply]

It realy takes a low down person to attact Mr Maddox who is in an assisted home. This man helped more people in this town than anyone will ever know.I guess you would be the person to say its all Chris's fault that the whole world is in a depression.I was one of the Builders/ Developers he helped for years because he trusted and knew that we would do everything we could do to pay our debt back.
No one ever` knew the economy would get this bad. I pray that the Maddox family can get through this terrible time. I wish people would think of there feelings and be kind about them because the have lost a Bank that will put a large hole in this community.

#1.3.1.1 Dennis Menace on 09/18/10 at 02:40 PM [Reply]

You know, hon, this Maddox klan is not a sainted bunch. Obviously, a lot of Winder people who were in cahoots with them over the years are going to spring to their defense. However, there are others, people outside the merry Winder clique of scotch-imbibing plutocrats, who did not fare so well under the Maddox raj. I know one fellow, who is no longer with us, who would revel in this instant failure. So, from a POV different than yours: The Maddox People got their comeuppance.

#1.3.1.2 Eddie Walters on 09/19/10 at 03:14 AM [Reply]

The Tarver lady is right, Chris is not to blame it is people like herself who default on loans,hide and report tractors stolen that are against loans.And are happy just letting someone else lose while they try to hold on to the way of life that no longer exsist.The only time you have seen these builders down grade their way of life is when the repo man finds that 50k dollar car or truck you got with your first draw from a house you were building, only to be back at the bank asking for more money to finish it.The bank should be thanking those people who have done without so they could pay their loans and all the fees that the bank has raised over the last year.The Peoples Bank has great people there and i hope they stay there,but for all the people who lost their lake and rental houses,well you know what they say. DONT BET WHAT YOU CANT AFFORD TO LOSE.

#1.3.1.2.1 mt on 09/22/10 at 11:05 PM [Reply]

I am sorry for the comment, I t is not nice when someone attack's your family, and that is exactly what you did. What you said had nothing to do with this blog, as of my comment did not either. If you feel so badly towards my family, I am sure you have our numbers call and get the story straight. I again apologize, but what you said was, and is uncalled for. Plus that car loan deal, I would love to see if you can buy one with the first draw on a Building Loan, It is barely enough to cover permits.I don't know where you get your fact's but my family will not nor has not hidden anything. It is people like you Sir who start this trash people like us have to fight.

#1.3.2 LoyalTPBer on 09/18/10 at 03:17 PM [Reply]

It is down right rude and, honestly, heartless for you to attack Mr. Maddox, a man who has done more to help this community than you ever will. Also, you can rest assured that Chris, and the rest of the Maddox family, will rise above this tragedy with dignity and grace, two attributes that are clearly lacking from your character.

#1.3.3 Red Ryder on 09/18/10 at 05:01 PM [Reply]

You're a bitter person, aren't you. Your hope for others to "...go down the drain..." is one ridiculous statement.

Go away, little man. Go away.

#1.3.3.1 Schaden Freud on 09/18/10 at 06:59 PM [Reply]

Not bitter -- just amused at all the hand-wringing and outright bawling that Mad-ox and his high & mighty bank got ground into the Arizona dust. Lord, there is still some justice in the world when a filthy rich banker gets what he deserves. It just makes me grin when I think of those FDIC drones and GBI goons prowling around what used to be old man Maddox's sacred enclave. His bank no longer exists, and the Winder creep-mob can just get over it.

#1.3.3.1.1 Red Ryder on 09/18/10 at 09:52 PM [Reply]

Just what does a "filthy rich banker" deserve? Is it the "filthy" part? Rich? Banker? Nothing illegal was done. TPB was generous in its contributions to the community.

I'm sure the "Winder creep-mob" will "get over it". Maybe you want to take TPB's place in contributing to the community. No? Figures. You'd rather throw darts. Little man. Thanks for nothing.

#1.3.3.1.1.1 Soothsayer on 09/20/10 at 09:25 AM [Reply]

Oh, yes there was something illegal going on!!!

#1.3.4 JPMorgan on 09/20/10 at 06:31 PM [Reply]

I think you may just get your wish Mr. Drysdale--this mess has only just begun to unravel--The real question is will the esteemed Mr. Maddox take the fall for all of his "preferred" thugs and theives businessmen loan shennagians; or will he roll on his good friends to save himself and what is left of the tattered Maddox empire? The FEDS are waiting -- and so are the jail cells!!! Lookout Winder "businessmen" it's about to get dirty--the auditors and lawyers have already caught the scent!

#1.4 Anonymous on 09/19/10 at 09:04 PM [Reply]

Just so all of you get your facts straight. The state of georgia is ranked number one in bank closures out of all 52 states. There isnt any one reason why peoples bank failed, but rather a whole chain of unfortunate circumstances that also affected every other bank that failed in the state.

#1.4.1 What? on 09/20/10 at 07:26 AM [Reply]

52 states?

#2 Another business started on 09/17/10 at 06:17 PM [Reply]

by daddy, busted by Jr. Explains the actions of the BOC a few weeks back

#2.1 Red Ryder on 09/17/10 at 07:52 PM [Reply]

You don't have a clue, do you. Not a clue.

It's easy to point the finger, when it's not your business, when it's not your family, when it's not your finances in the bullseye. I believe those at the top of The Peoples Bank worked hard at what they did, and it started at the top. The Maddox family seemed to care for Barrow County, and I was told that Chris Maddox worked as hard as his father to continue their success.

Oh, yeah, it was started by his grandfather. You obviously don't know what you're talking about.

#3 Beth Barton on 09/17/10 at 06:28 PM [Reply]

This makes me so very sad. The Peoples Bank & it's "family" are very important to this community & I'm sorry to see this has happened. Praying for all!

#4 Barrow Native on 09/17/10 at 06:43 PM [Reply]

I really do hate this! The People's Bank is a central part of the Barrow County community! It's a shame we can't just punch someone with the FDIC in the face for this because that is what should happen. For a bank, who I know first hand, has tried it's best to do things right by it's customers and by the law...it just a down right shame. What a bitter way to end an already challenging week. If Community & Southern has any sense at all they'll keep the present staff on board, or they'll learn the hard way that Barrow County will stick with who they KNOW will give them a fair deal and work with them for the good of the common people.

PEACE OUT!

- A very frustrated and somber Barrow citizen

#4.1 H Robbins on 09/17/10 at 07:52 PM [Reply]

very disturbing ..as a 30 yr resident of Winder and Barrow County we have dealt with Peoples during that time and they were always there to help..Peoples Bank has been a part of Barrow since I can remember.... Is this a sign of the times ?

#5 Meredith Cameron on 09/17/10 at 07:46 PM [Reply]

I'm sure the Barrow County community feels like it has been sucker punched after the news of The Peoples Bank failure. This bank has been a rock solid institution for many generations. Barrow County is a much better place because of the support the Maddox family, the bank employees and directors have given to every charitable endeavor within this community and beyond. We will miss you.

#6 So Sad... on 09/17/10 at 07:55 PM [Reply]

What a truly sad day for our community. The People's Bank has always been a tremendous asset to Barrow County. They have always been a huge supporter of our schools and Relay for Life. We can only hope and pray this bank from Carrollton has an understanding of what a "community" bank is.

#7 citizen on 09/17/10 at 08:33 PM [Reply]

The bank at Carrollton is relatively new because after doing research I found they put together a huge sum of money and recently started acquiring banks. It seems they are getting very large fast.

#8 Just Sayin on 09/17/10 at 09:07 PM [Reply]

My credit wasn't worthy to start a saving account with them. Bank of America was happy to have me tho. Good ridden

#8.1 Anonymous on 09/18/10 at 06:44 AM [Reply]

Wasn't just my credit they were worried about, it was my business plan. They sent me packing. Regions to the rescue. Paid that 5 year loan off in 2 years. Wanted to expand, again PB said no, too risky. BB&T, Regions, BofA, all approved loans. Got to pick the best rates and terms. Again, that loan is being paid off ahead of schedule. 15 year loan - 3 years in - about 40% paid off.

So they made their bed by lending money to the "community" and "local" builder / developers, who were playing the paper financial game.

Just breaks my heart to see them fail. NOT!

#8.1.1 EXAQCTLY on 09/18/10 at 08:33 AM [Reply]

The people here ranting about Peoples giving to the community need to get their heads out of 1985. Peoples hasn't done a thing for the "community" at large for many many years now. They have contributed ZERO to small business and have stood by and watched their bottom line continue to fall while the Maddox's continue to reap yearly bonuses. Nice. Stay classy. Good riddance.

#8.1.2 anonymousdefenderofright on 09/19/10 at 01:37 PM [Reply]

Having worked in banking (for a competitor of The Peoples Bank, I know that the reason you can not get a checking account at a bank is because of such a low credit score or a history of writing "bad checks". I am pretty sure it was a smart move to not open an account for you

#8.1.2.1 Just saying on 09/20/10 at 06:04 PM [Reply]

not a checking a saving account, And I have never defaulted on anything.

#9 James Beck on 09/17/10 at 09:59 PM [Reply]

It is funny to me how some of the bailed out institutions were "too large to fail" First it was a friend's bank(Piedmont) and then THIS?? I have had same checking account with this bank since I was 14 years old. I feel as if I should be at a wake at the moment! I feel really badly for Bill Whitley of Piedmont Bank and the Maddox family & the Peoples Bank "family". Damn shame WE didn't have any say in where that bailout money was spent. Sure was nice being part of one of the last REAL community banks. Hope all works out well for all the present employees.

#10 Anonymous on 09/17/10 at 10:10 PM [Reply]

Why would someone post on here they want to punch the FDIC in the face? All they do is insure people who put their money in the bank. Blame the loans that the People's Banks gave out. Not the FDIC.

#11 Debi Krause on 09/17/10 at 10:24 PM [Reply]

What a sad day for me personally. The Peoples Bank has been my bank for over 22 years. The Maddox Family have given so much to this community over the past 60 + years. The Peoples Bank employees know what customer service truly means! I hope that does not change with the new name. You've all done a fabulous job. Thank you for all your servant leadership you have shown the Barrow County Chamber of Commerce. Several years ago Chris Maddox funded a Girl Scout training that I attended in New York. I will never forget what Chris and the Bank did for me personally. I just hope that Community & Southern will continue the service that has been a tradition here.

#12 anonymous on 09/18/10 at 12:13 AM [Reply]

i'm just gonna say the peoples bank was really great!everyone else might put it down but they always done me great...you all will be greatly missed..i hope and pray for each and everyone there they will still get to keep there jobs..your prayers are with me...

#13 Citizen on 09/18/10 at 12:49 AM [Reply]

I wonder if this new bank will start actually LOANING money? Like, you know, how banks are SUPPOSED to do to survive? Sad to say, but the writing was on the wall when Peoples stop loaning out money.

#14 Greg Dillard on 09/18/10 at 04:25 AM [Reply]

There has never been and never will be a better corporate citizen of Barrow County than The Peoples Bank. Nobody will ever support our commmunity the way they have for decades. Chris Maddox helped me build my business by introducing me to other bankers throughout the southeast and I can tell you that the Maddox family is held in very high esteem throughout the banking industry. They put Winder, GA on the map in so many ways for so many years. We in Barrow County won't even know what we have lost until the next young person needs their first loan, the next small business needs a banker to help them grow or the next local charity needs a key donor. Please pray for Chris, the Maddox family and all the associates at the Peoples Bank. You might also want to pray for Winder and Barrow County, too because we have forever lost one of the most postive influences in our community at a time when we need all the support we can get.

#14.1 Citizen on 09/18/10 at 08:44 AM [Reply]

Greg, I believe the same business that you say Peoples helped you start ended up failing didn't it? I believe it was more than one. Seems to me, you are part of the problem.

#14.1.1 anonymousdefenderofright on 09/19/10 at 01:48 PM [Reply]

I am not sure what your comment to Mr. Dillard's response meant, it did not make sense. I have know Mr. Dillard for years and he has never had a business fail. You are confused.

#14.1.1.1 Anonymous on 09/19/10 at 07:38 PM [Reply]

Oh thats interesting. Care to tell me the businesses that haven't failed then?

#14.1.2 Bart Harkey on 09/21/10 at 10:19 PM [Reply]

Citizen, It is very easy to make these types of comments when you don't put your name on your comments. If you believe the crap your writing put your name on it.

#15 Mike Mingus on 09/18/10 at 06:59 AM [Reply]

I worked for The Peoples Bank for 6 years. My wife worked there for 16 years. The Peoples Bank was a company run by good, caring people who made it their priority to provide a healthy and fun work environment for their employees. I've heard people already saying they failed because they were greedy. Truth is they were not greedy enough. Like most banks, they made loans to folks who didn't pay them back. That is not being greedy. This is a huge loss to our entire community and our thoughts go out to the entire bank "family" today.

#15.1 Shelley Graden on 09/20/10 at 03:24 PM [Reply]

I Worked For The Peoples Bank for 6 years. Loved working there and loved my co workers I have a lot of great memories at that bank. Hope all works out well for all the present employees. You will be in my prayers.

#16 sorrytoseeit on 09/18/10 at 08:16 AM [Reply]

Whatever Maddox the younger's faults, he brought the bank into the 20th century. When I moved here, they closed on Wednesday afternoons and the facilities were antiquated. I've lived in many places and People's is the only bank I can say I loved to deal with.

I hope they keep the wonderful people who work at my branch.

#17 Joe Brown on 09/18/10 at 08:56 AM [Reply]

There is something I don't understand, how can a
bank fail with $444 million in assets and $398 million in deposits, what are the liabilities which wasn't mentioned in the article. Did they fail because they ran out of money, couldn't meet obligations, or were just called a failure because some asset to liabilities ratio isn't what the Federal Bureaucrats says it should be.

#17.1 Citizen on 09/18/10 at 09:32 AM [Reply]

I believe the Peoples Bank failed, Joe for what the bank industry refers to as Tier-1 capital ratio. It's a ratio of their total capital to its available cash on hand. In this instance, the Peoples Bank never really recovered from some shady investments it made in Arizona and God knows what else. Don't let people kid you who aren't in the know. Defaulted loans were NOT the core reason for their failure. The Peoples Bank has had some of the tightest underwriting in the business. I'm afraid Chris ended up listening to too many local wealthy business men or councilmen (sometimes they were one in the same!). The fault lies solely at the foot of Chris Maddox however this community at large, namely some local well known builders owe Chris a huge apology.

#17.1.1 citizen on 09/18/10 at 10:29 AM [Reply]

Who are you kidding with the tighest underwriting???? Banks here in Winder don't go all over outside the state lending.

#17.2 Anonymous on 09/18/10 at 04:47 PM [Reply]

Joe: In banking lingo, deposits are "liabilities" because the bank has to pay that money back to the account holders if they come in to withdraw it. I've always thought news organizations should do a better job of explaining that.

#18 Joe Brown on 09/18/10 at 09:26 AM [Reply]

#19 Joy Carey on 09/18/10 at 10:43 AM [Reply]

I have been with peoples bank for 10 years. When I started my own support group organization for families with autistic children 3 years ago, they donated money to the group. They were very supportive and helped the group to educate others and be part of the community. Thank you for the service you have provided for many years and I will support you in this transition.

#20 Angry SOB on 09/18/10 at 11:02 AM [Reply]

The Peoples Bank has been here my entire life and has helped me in so many ways. To hear y'all say that it is Chris Maddox's fault is absolutely stupid, wrong, and ignorant. It is not all his fault it is the economy's fault and the losers that didn't pay their loans back. And y'all do not know how hard he tried to keep the bank afloat, you also do not know what you are talking about when you say they didn't make loans THEY COULDN'T. So shut up and mourn because winder will never be the same, and the comments about the bank not serving the community are wrong to. What about the Relay for Life, which they have sponsored and worked at for many years. To he Maddox family and the tpb family, I love you all, I'll miss you all!!!!! No matter what the new name is, The Peoples Bank will always and forever be The Peoples Bank.

#20.1 Citizen on 09/18/10 at 12:09 PM [Reply]

Don't be ignorant. If banks CAN'T loan money, they have no business being IN business. You have to at the very least be able to loan money to small business. Supporting Relay for Life, a noble cause as is it, has nothing to do with supporting the local community where it needs it. The Maddox family are some good people, no doubt and saying it was solely Chris's fault is wrong. The problem stems from the investments Peoples Bank made. They gambled. They lost. Simple as that. If they would have turned their attention more to helping the community where it needs it (namely in helping small business) they probably would have survived.

#20.1.1 annonymous on 09/18/10 at 02:08 PM [Reply]

Citizen, I take it that you didn't have the CREDIT for a loan. Get over it... No one is to blame in this situation.

#20.1.2 i second that on 09/19/10 at 10:42 AM [Reply]

that's it in a nut shell, well said!!

#20.2 Angry SOB on 09/18/10 at 07:14 PM [Reply]

The Peoples bank had the money to do loans but the government would not let them and this is the same for all COMMUNITY banks which you seem to not know the meaning of. Bank of america is not a community bank nor regions. So you go do your business with them and see how you get treated. At tpb I always felt like part of the family and I guarantee you that more than half of the customers will agree with me on that one. They had great customer service and still will as long as the former employees of tpb stay with csb.

#20.2.1 Anonymous on 09/18/10 at 11:36 PM [Reply]

Oh dear, AngrySOB. You really don't have a clue. It's the governments fault now? They forced Peoples not to loan money? You have half the people here saying they failed because of the money they DID loan, the other half are saying they didn't loan enough for whatever reason. The truth is they made bad loans years ago and weathered through the storm. The underwriters tightened up and decided that the only loans that happen would be to the folks who already had money. Last time I checked, if you already had money, you wouldn't need lending! It's bad practices such as this and terrible investments that failed the Peoples Bank.

#21 Citizen on 09/18/10 at 03:09 PM [Reply]

Wasn't speaking for myself. This is Peoples Bank policy for a few years now. They didn't loan because they don't have the money to loan. People with perfect credit were getting turned down every day there. Ask any board member. It's well known. Get over it? Typical adolescent response when you don't have anything better to say. No one is to blame? Wow, thats funny. Last time I checked, Winder still had a few banks that were actually doing well. I'm sure its just coincidence though. They must just be lucky since in the end its really no ones fault according to you. Try telling that to the poor people at Peoples who will now lose their job because of "no ones" fault.

#22 Anonymous on 09/18/10 at 03:14 PM [Reply]

Not sure about the small business loaning as has been mentioned a few times but I have seen many times where individuals have been turned down for loans there only to have other local banks happily take them in. I believe Peoples Bank has been bleeding money for a few years now in part because of the housing market but most of that can be pinned on local builders who should have known better.

#23 TPB on 09/18/10 at 03:49 PM [Reply]

The Peoples Bank will forever be remembered as the heart of the Winder community, it truly was a fabulous bank run by honest and loyal people. My prayers go out to the Maddox family as well as the peoples bank family.

#24 Sad on 09/18/10 at 07:11 PM [Reply]

Those without having done wrong are welcome to throw the 1st stone. The Peoples Bank is a icon for this community. They may have loved it too much! They gave out loans when they should have said no! A time at which if a man said he would pay you back even if it took 2 jobs to do it! We have become a country that needs to lay the blame on someone. If you point your finger at 1 person you have 3 pointing back at yourself. God bless the Maddox's as they hurt just as you do, they loved this community. Maybe we all need to take a good look at our priorities. God first, family. We have a hungry community for hope. Where do you find it? Pull together and pray!

#24.1 annonymous on 09/19/10 at 06:58 AM [Reply]

I would like to 2nd that......

#24.2 Anonymous on 09/21/10 at 01:48 PM [Reply]

Did you ever work there? I did, and I can think of many examples where The Peoples Bank turned loans down, and the customers did receive loan approval elsewhere. Just setting that record straight.

#25 cmj on 09/18/10 at 08:38 PM [Reply]

Looks like I'll find a new bank...sorry to see my hometown bank go.

#26 Amazed on 09/18/10 at 11:27 PM [Reply]

Interesting how most of Peoples Bank supporters here are current or former employees. The other few are from people who have had their share of bad debt and have contributed to the banks failure. You guys aren't painting a very rosy picture here. I'd love to actually read about some success stories but alas I'm afraid they are few and far between.

#26.1 jonas on 09/19/10 at 08:10 AM [Reply]

I am "one of those people" who received a loan becasue of who I knew. The bank flat out told me that the People's Bank wasn't interested in my credit card debt, but becasue someone vouched for me I got an unsecured $17000 loan. Since then, I've never missed a payment and only owe about 10 payments. My thanks to them for helping me when I needed it. And shame one you who got loans like me, because you knew somebody and failed to hold up your end(pay your bills).

#26.1.1 Interesting on 09/19/10 at 09:12 AM [Reply]

Good point Jonas. You are certainly one of the few but this is the exact reason Peoples failed. You shouldn't have to "know" someone at a bank to get a loan, ESPECIALLY at a community bank such as Peoples. I was in the same boat too. I knew someone and that was the only way they would talk to me. This was years ago. I appreciated the loan but was extremely disappointed I had to know someone before they would talk to me.

#27 B.C on 09/19/10 at 08:37 AM [Reply]

Maybe they gave away to many suckers and pens.

#28 Anonymous on 09/19/10 at 08:59 AM [Reply]

This bank failed because it was stupid.loaning mostly to poor locals in a poor community."who do you know" good ol boy banking.if I lost my home because of the economy,I couldn't have a checking account.you have to be able to take the good and the bad is this economy.this greedy bank only wanted the good,and still got slammed.couldn't weather the storm when its "only perfect credit need apply"lost their good ole boy income.

#29 Pray 4 who on 09/19/10 at 11:55 AM [Reply]

Lets save all the praying 4 the sick folk and the poor fella who can't afford food 4 his kids,not 4 a guy living in a 15000 sq. ft. house. I think they will get by.

#29.1 Anonymous on 09/19/10 at 07:05 PM [Reply]

or we could pray FOR those who don't know how to type properly.

#29.1.1 Ronny on 09/19/10 at 08:08 PM [Reply]

I could make out what the pray 4 who guy said.Maybe if the P.B. had more people who could type both numbers and letters the FDIC would not be camped out up there right now.

#30 Wolf Larsen on 09/19/10 at 03:06 PM [Reply]

Quote:
“If Charles Maddox was still at the helm, this would have never happened.”
Agreed.

There has been several references here to some loan deal(s) in Arizona that went bad (all by anonymous contributors). Is there anyone who has any real details about this (not hearsay)? If so, I would like to hear it.

It seems to me that here is an opportunity for Mr. Buffington / Mr. Bridges to do some investigative reporting and tell us what “really” went wrong. How about it, Mike/Chris!

WL

#30.1 unknown on 09/19/10 at 05:09 PM [Reply]

OK... it's plain and simple. Their capital ran out! When you write down loans and charge them off it eats at your capital. They also should have cut spending more this year instead of sponsoring the chamber golf tournament and acting as if nothing was happening in the community. I think the article that came out earlier this year with Chris stating nothing was going to happen to the bank was a bit much.

#30.2 Anonymous on 09/19/10 at 06:53 PM [Reply]

Here you go Mr Larsen. http://tinyurl.com/25nyfb5

#31 Anonymous on 09/19/10 at 05:48 PM [Reply]

TPB would not give me mortgage for 150K, even though I have an 800 credit score and make 100k a year. I have no other loans except student loans of $100 a month.

Maybe I didn't get the loan because I am not from Georgia and not part of the BC good old boy network?

I took my buisiness elsewhere, and the other bank was glad to give me the loan that I needed.

Good riddence! Have a nice day.

#31.1 Customer denied on 09/22/10 at 09:45 AM [Reply]

The People's bank treated me very rudely when I was a young man and walked in for a cheap car loan to be co-signed by someone with triple-A credit. They angrily turned both me and the 3A co-signer down without anything more in explanation. We didn't know anyone there. All the good stories I've heard about People's in the past 20 years have been from people who grew up here. We were outsiders. I got the loan with no question from another bank that didn't know us.

#32 Paul Cummins on 09/19/10 at 06:00 PM [Reply]

I was just wondering why this great community lender and blessing to mankind has not made a public statement to assure all the good people of barrow that their money is safe. We have to hear it from the feds. Well I didn't trust the feds with my life savings the last decade.Ya'll sure as hell called when a payment was due. You need to grow a pair and step up.

#32.1 Dearest Paul Cummins on 09/19/10 at 07:47 PM [Reply]

I'm pretty sure there are FDIC regulations that forbid the "great community lender and blessing to mankind" to make a public statement to assure the community everything is going to be alright. Maybe if you stopped thinking about yourself and considered oh i don't know, other people's lives... you would have the common decency to say something productive, rather than counter-productive. Just a thought.

#33 Agreed on 09/19/10 at 07:34 PM [Reply]

Couldnt agree with you more. I was in the same boat with the same credit score and similar income. They didn't want to loan me a dime. NOT A DIME. I have never been so shocked in all my life. If you couldn't give just a 5k loan to ME then I assure you they either a) were only giving loans out to their own little club or b) weren't doing loans anymore at all. Either way, quite honestly, they deserved everything they got.

#33.1 anonymousdefenderoftheright on 09/20/10 at 12:44 PM [Reply]

If you make such great money and have such a great credit score why would you need a loan for such a small amount? Poor money management on your side???

#34 Fay Burnett on 09/19/10 at 08:03 PM [Reply]

The Peoples Bank was yet one more unfortunate casualty of the economic storm that has swept across our country. The sad truth is that ALL banks are insolvent, with the exception of those that have been bailed out by the government, or those that have taken over assets from failed banks ( whose loans have been 'made good' by the government.) If all banks truly reflected on their balance sheets the 'actual' market value of their real estate holdings, they would all probably be closed.
They are currently showing profits only by borrowing money from the government at almost 0% and then turning around and loaning it back to the government. This is my simplistic understanding of someone outside the financial system. At any rate,none of us should be taking joy at the downfall of this or any other bank. The storm is not over, and we do not yet know if WE will also be casualties.

#34.1 Anonymous on 09/20/10 at 07:25 AM [Reply]

The PB FAILED because of a BAD business decision. They invested in "Ocean Front Property in Arizona" only to discover, it was a BAD investment. The Arizona property / deal made back in 2007 for 100M is on the market for less than half (45M)what they invested. The bank never recovered!

HAD they STAYED LOCAL and SUPPORTED the SMALL BUSINESS in the COMMUNITY, they might have survived.

Poor Old Chris, bless his heart, has only himself and his greed to blame.

#34.2 really on 09/20/10 at 10:19 PM [Reply]

oh really??? Now just how do you get ALL banks are insolvent? In my opinion, just because another bank takes over another bank that failed, it simply says they were in a position to do so and wisely making use of their capital position. Good business practice says to me that a business must leverage their capital to make the business grow. Not every bank is trying to misrepresent their balance sheets. I know some people at a couple different banks that happen to be doing WELL and that's not the case. It sounds like you have a gripe!

#35 Watch and c on 09/20/10 at 05:31 AM [Reply]

This is just the slow painfully start of a government bank controlled system. Please add up the amount of community banks to fail Vs ones like B of A. Ask the Whitleys of the former Piedmont Bank what happens when the head hunters come in and take thier seats, You lose your stocks, retirement and job!!!! Good luck and get your resumes going if your in that postion because the new guys are not going to keep you knowing your too blame. In business the people calling the shots are the leaders.

#35.1 Jack Legg on 09/20/10 at 08:09 AM [Reply]

I'll tell you my peoples bank story.Everybody in my family used that bank, including me with my little savings account. When I grew up and got married I went to them and got a construction loan and built a house.The loan officer though at the time ripped me off by refusing to close oveer to a permanent loan at a lower rate,so when the construction loan came due they offered me to renew it for another sixty days at an exobiant interest rate.The house was 90 % complete, so I went to another local bank,showed them the appraisal, being for about twice the money I needed and told them what Peoples was trying to do.They said Peoples had a reputation for that sort of thing and they fell all over themselves to get the permanent financing.I took all of mu banking business away from peoples back then and never looked back, a lot of my friends and family did too ,after i told them what they tried to do.After that I have always thought they were a bunch of crooks,guess I was right.

#35.1.1 anonymousdefenderoftheright on 09/20/10 at 12:53 PM [Reply]

First of all you need to learn how to spell, second I am sure after reading your post that the bank that give you the permanent mortgage bundled it and it was part of the derivitives that helped bring down the economy...talk about crooks....
As a client of teh Peoples Bank for many years I must say I was glad they were more selective of who they gave loans to. It made me feel like I was dealing with a classier type of business.

#35.1.1.1 Jack Legg on 09/20/10 at 02:09 PM [Reply]

maybe it was bundeled, I dont know, Ive never even been a day late with my mortgage payment in close to 20 years though.The issue I had with them was they were trying to make more money off of me than I considered fair.I know of others that had the same sort of experience with them back in those days.
I do think they did a good job of supporting the local causes and schools, there will not be anyone or any entity to step in and take their place with that sort of thing, I just couldnt give them my business after what they tried to pull,you know, some things just stick with a person,.

#35.1.1.2 Ricky on 09/21/10 at 02:11 PM [Reply]

Before you talk down on someone's spelling you need to learn how to spell. Teh? I am not feeling the love here.

#36 Sad Day on 09/20/10 at 09:21 AM [Reply]

Folks, this is a sad day for all of us. You do not want to see a day where the big banks control the lending. Support your local community banks and businesses. The larger banks are kept alive due to the lobbyists and political donations that they make. Once they are fully in charge then theses supposed horror stories you are speaking about will actually be true.

For the rocket scientist who is speaking of an ocean-front loan in Arizona, there is no ocean front in AZ. It borders Mexico. And Peoples only had $1 million in exposure on that loan as it participated the loan out to 30 other banks which is a common practice.

For those of you who are rejoicing on this you are just plain ignorant. Just wait and see what will happen to you when you come hat in hand and want a loan from the big boys.

#36.1 Citizen on 09/20/10 at 01:00 PM [Reply]

Just for the record, it was 60 banks and close to 40mil was "exposed" from Peoples not 1mil. It looked like a good deal to begin with but no one could have seen what would happen to the housing market (especially in AZ where it was one of the hardest hit states). This was a huge part of why the bank failed. Peoples made their money by charging much higher interest than any other local bank. They did NOT however take a huge hit on local foreclosures as has been previously stated. The Maddox's are good folks but sometimes bad things happen to good people.

#37 Debbie Stazak on 09/20/10 at 09:50 AM [Reply]

It is amazing to me how many people who have made these negative comments are such cowards that they hide behind "Anonymous" or made up names. Chris Maddox IS and will ALWAYS be a stand up man of character and integrity. Blaming him is taking the easy way out, a cop out. The Maddox Family and the PB Family are in my prayers. This is a sad time for the Winder Community. There will never be a bank like The Peoples Bank.

#38 Annie Omus on 09/20/10 at 01:08 PM [Reply]

Been in Barrow County for 10 yrs and I was not even aware this Bank was open for business.

#39 Who Cares on 09/20/10 at 02:24 PM [Reply]

Who cares how these people spell or type. What are you all doing, grading papers? Just another failed business that the govt. that you love to hate took over.

#39.1 Tiffany on 09/22/10 at 11:56 AM [Reply]

Proper spelling and correct sentence structure are a reflection upon one's intelligence - whether accuracte or not. If one cannot communiate their opinion, said opinion holds little merit to the audience. If we, as a people, no longer value proper communication through the written word, we will perish as an industralized society. Further, please note the government did not take over People's Bank, as you state. The article(s) about this topic and the comments, clearly indicate the bank was bought by another bank.

#40 crowe on 09/20/10 at 03:34 PM [Reply]

I have banked with TPB for 35 years now and I started with small loans with my dad's signature and the people always worked with me ,and I always paid my loans back on time. that is what you do when people treat you right, YOU DO the same.this is sad for me b/c I finally worked my way up with my liitle bitty incomes over the years to reach my own collateral,BUT it was the PEOPLE in the bank who helped me.they are very good people, and to this day I cannot say I have ever met Mr. Chris Maddox. the people,employees, made that bank also what it was, now I work for the county, and hey people anyday I expect these doors to lock up and not even have a job. my point is I worked hard to get loans and money , but if it wasn't for the TPB I would have nothing. we can't blame Mr, Maddox, or Jr on this one, look around dumbies, the whole world is in a depression.no one can go on and on and on with cash. this whole world is about MONEY. you can't even afford to vote anymore,b/c we have to pay these dotheads gas to get to the polls.blame who you want , but the Maddox's are great people and still will help u if you EVER needed anything. I am going to miss it, its the only bank I know..pray for the Maddox's.

#41 Oh WELL on 09/20/10 at 06:05 PM [Reply]

Dang 88 Crowe ,you must be lost now without them.My heart goes out to you.

#41.1 crowe on 09/21/10 at 09:17 AM [Reply]

i don't need your heart.....the people that have lived in Barrow, they know the real deal, you outsiders, if you don't like it, the MOve out of this county.or shut up one.

#41.1.1 Anonymous on 09/22/10 at 07:42 PM [Reply]

Crowe, try getting out of Barrow County once in while. There's a lot more to see than the "great" city of Winder.

#42 Shelly, Winder on 09/20/10 at 06:19 PM [Reply]

Now it's real sad that Mr. Maddox didn't have a job to go to today, but I have not heard of any loans that they made interest free. So he made plenty of money over the years. If he didn't handle it right thats his mistake,but all you people acted like God just rose and fell should get your heads out of your butts. He went under just like alot of people have done. No shame at all in that, but he was not in business to make this a better place. IT'S ABOUT MONEY.

#42.1 Angry SOB on 09/21/10 at 09:13 AM [Reply]

Mr. Maddox did not care about the money he worked there because it was his families business and he wanted to carry on his families legacy. He did a fine job at that to. The People's Bank was one of the largest community banks in Ga and one of the most successful. He expanded his bank because he wanted to be a part of and help many other communities not just winder. I can guarantee you that half the people in that bank don't care about the money because they love the people and the service that the bank did for the community and i know you people dont think they served the community but they did. they helped so much with local schools and had a program that they started where they raise money for electronics and school supplies that the county just cant pay for. o and they as a company, and Mr.Maddox to, participated in many habitat for humanity builds. so i would like to see you lazy people get up and support your community just like the Peoples Bank did. how bout you people get a heart because Mr. Maddox had to wake up this morning and yesterday morning, and for many mornings, unemployed and sad. So please give him some time before yall attack him for gods sake he just lost everything he has worked for his whole life. i know he is not the only one who has lost his job for the past few years but please he is just an innocent guy that lost something that has been in his family for 84 years so just give him a break before yall go and say hes an awful person. i hope that none of you even the people that say mean things never have to go through what him and his family and the employees at the Peoples Bank are going through.

#42.1.1 crowe on 09/21/10 at 03:32 PM [Reply]

thank you!!! very nice reply to this community. we will NEVER for get how TPB took over the ball fields in statham, so our kids could play on a decent field, also LOTS of parents pitched in on the grass , etc. People , u need to realize they did LOTS of things for this community. sad for you heartless people that know NOTHING......

#43 somber on 09/21/10 at 03:03 PM [Reply]

And the headline for today in the national news is, "The recession is over!". I don't think so!! I tremble for your nation.

#43.1 Oh dear on 09/21/10 at 09:09 PM [Reply]

How uneducated our society has become. Listen, the term RECESSION deals with macro economics and has to do with the GNP of one quarter to the next. We ARE NOT in a recession. We haven't been in almost a year. That being said, the economy still SUCKS. No one can argue that. Recession does not equal unemployment. PLEASE PLEASE PLEASE understand these terms before showing your ignorance.

#44 Weetart on 09/21/10 at 05:56 PM [Reply]

At one time being rich Bankers,you have to look for every tax break you can get. For gods sake you would not want the goverment to get it. The goverment may give it to some rich farmer as a subsidie. upgrade the school lunch program or maybe invade another forgein country

#45 Fay Burnett on 09/22/10 at 09:01 AM [Reply]

A quote, "A recession is when you lose YOUR house; a depression is when I lose MY house" - pretty much sums it up.

#45.1 RMann on 09/22/10 at 07:49 PM [Reply]

Blah,blah,blah.....blue,blue,blue..let's hope this clears out some of the B.S thats been going on in this little ol' town. As I see it..too many in this town are from "old $" with only the almighty dollar in mind..when daddy and granddaddies land,money and history are all gone..what in the hell will this glorious ol' town do...hmmmm

#45.2 Robert on 09/23/10 at 06:42 PM [Reply]

2011 is going to be the big storm. All you commenters on either side better be ready. We have not seen anything yet. Mark my words. People need to plan because the government, the media ran by government and your favorite politician are not going to fill you in. In fact they could care less because they have money to spare unlike most of us.
Everyone kneel down and humble yourselves and pray to the Lord.

#46 shred man on 10/11/10 at 06:59 PM [Reply]

at least no one has to drag that 64 gallon shred can off the second floor any more

#47 Robert R. Ledbetter on 11/12/10 at 10:39 PM [Reply]

I suppose by now some of the shock of the Peoples Bank closing has diminished. I do not live in Barrow County nor have I lived there in 60 years. However I did live there in my youth and I at least know more people in the cemeteries around Winder than I know alive. The blogs exhibit anger, fear, sadness, and in some instances a bit of malice. First, the FDIC exists to protect depositors. It is not out to injure communities. Leaving Peoples operating was too much of a risk. I have no doubt that Peoples supported the community. And it is perhaps a paradox that the management also made many bad business decisions. I was also bothered by seeing people accused of having lied, and in other examples of having used incorrect of bad English. I think I know some small amount about English, and the first rule of good English manners is to ignore lapses in use. To close: I do not know the Madoxes. However I do recall my father getting a crop loan in the depression. It may have been for as much as $25.00. I have long since left Winder and Barrow County to make my life in other parts of the world, and it has been an excellent and good life. I suspect Winder and Barrow County is resilient enough to survive.

Robert Ledbetter, PhD English

#48 Sam Utter on 04/26/13 at 10:04 AM [Reply]

I have to say that it was the people fault that worked in the back. I have heard of shady deals and that Chris Maddox was buying all of winder with the poeples money. Not to mention the deals of Kenny Lumpkin, Chris old basketball buddy. It come down to money is the route of all evil, especially when you have a lending pool of everyone that works there. I just feel it was the presidents fault, because he had to know what was going on. If he did not he was not doing his job!!

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Peoples Bank fails; Carrollton bank to take ownership

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Peoples Bank fails; Carrollton bank to take ownership

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