In the second quarter it lost $24 million, compared with $45 million for all of last year.

"The board and management did everything they could under the circumstances, but the level of problems that the new management team inherited was just too large to overcome," said Walter G. Moeling 4th, a partner at Powell Goldstein LLP in Atlanta, who had advised the bank.

Integrity failed just days after the FDIC announced that the "problem" bank list had increased from 90 to 117 institutions, and that assets on the list had tripled, to $78.3 billion.