Georgia Bank Bet Big on One Horse

Integrity has acknowledged that it made 14 loans for a total of $83 million to entities owned by the same guarantor; that amount represented almost all of the bank's available capital early last year. While Integrity didn't disclose the identity of this borrower, people familiar with the matter say it was Guy Mitchell, a Coral Gables, Fla.-based property investor. The money went to five shopping centers, a primary residence for Mr. Mitchell, and a condominium-conversion project.

All of those loans are now in default. Mr. Frawley said the bank has been "trying diligently to collect as much as possible," but he declined to identify the borrower or discuss other specific customers.