A Sad Day for Local Banks in the North Georgia Mountains

Opened in 1909 by 10 local businessmen, the Bank of Hiawassee grew strong over the ensuing 97 or so years, perservering through the Great Depression and the lean years that followed, as small communities throughout the Appalachians struggled with the after effects of the Depression far longer than their industrialized counterparts. Yet, the small bank in Towns County continued to strengthen, growing from $25,000 in deposits in 1909 to over $435 million, according to its Website. In the process, they expanded into the neighboring counties of Union and Fannin -- opening as Bank of Blairsville and Bank of Blue Ridge, respectively -- becoming one of the largest employers in the North Georgia mountains. The institution not only employed many of the locals, it also underwrote their dreams -- dreams of business and home ownership.

In a world increasingly run by large, faceless corporations, Bank of Hiawassee retained its small-town roots. It was a local bank, run by locals for locals, and as its Website still says:"Bank of Hiawassee is the oldest business still in existence in Towns County, as well as the oldest financial institution in several surrounding counties."

Sadly, over the course of the past four years, the badly shaken real estate market accomplished what the Great Depression didn't, as Federal regulators moved in yesterday and seized control of the bank and its assets, closing the doors of this over-100-year-old institution. As the bank's board chair, Elois Anderson, recently told the Atlanta Journal-Constitution, with little other industry in the area to speak of, the bank had been heavily invested in real estate loans, which had increasingly gone bad. "We had all our eggs in one basket," she told the AJC. The bank will reopen under the auspices of Citizens South Bank of Gastonia, NC.

Another local financial institution, Appalachian Community Bank of Gilmer County -- operating under the names of Gilmer County Bank and Appalachian Community Bank -- was also taken over by the Feds, and was picked up by the Community & Southern Bank of Carrollton, GA.