Title of Report [omit “Audit of”]

March 2009 Report No. AUD-09-006 Material Loss Review of Integrity Bank, Alpharetta, Georgia AUDIT REPORT Audit No. AUD-09-006 March 2009 Material Loss Review of Integrity Bank, Alpharetta, Georgia Federal Deposit Insurance Corporation Audit Results Why We Did The Audit Integrity failed primarily due to management’s aggressive pursuit of asset growth concentrating in As required by section 38(k) of the higher-risk ADC loans without adequate controls. Integrity lacked adequate loan underwriting and other Federal Deposit Insurance (FDI) Act, loan portfolio and risk management controls and liquidity management practices to support its growth the Office of Inspector General (OIG) strategy. Resulting losses severely eroded Integrity’s capital, leading to its failure and material loss to conducted a material loss review of the DIF. Specifically: the failure of Integrity Bank (Integrity), Alpharetta, Georgia. On Management. Integrity’s BOD did not ensure that bank management identified, measured, monitored, August 29, 2008, the Georgia and controlled the risk of the institution’s activities. In addition, the BOD did not ensure the Department of Banking and Finance implementation of corrective actions in response to bank examinations and audit recommendations. In (DBF) closed the institution and particular, ...