First Coweta Bank Announces Third Quarter Results

/PRNewswire-FirstCall/ -- First Coweta Bank (OTC:FCWT) (BULLETIN BOARD: FCWT) , based in Newnan, Georgia, reports a net loss of ($484,363) or ($0.17) per share for the quarter ending September 30, 2008 as compared to a net loss of ($188,847) or ($0.07) per share for the same quarter in 2007. Net loss for the nine month period ending September 30, 2008 totals ($1,815,776) or ($0.65) per share as compared to net income of $606,439 or $0.22 per share for the same period in 2007. The bank's total assets have declined over the first nine months of 2008 from approximately $179 million on December 31, 2007 to approximately $163 million on September 30, 2008.

Third quarter 2008 results were primarily due to increased non-performing assets and compressed net interest margin. Non-performing assets totaled $14.2 million and $3.4 million at September 30, 2008 and September 30, 2007, respectively. The bank took provision for loan losses of $1.36 million for the quarter ended September 30, 2008. Our resulting allowance for loan loss was approximately $4.4 million at September 30, 2008, which represented approximately 3.23% of total loans. Management has added significant provisions in the first nine months of 2008 and will continue to evaluate our loan portfolio and real estate owned for additional changes to the allowance for loan loss reserve.

Mike Barber, President and Chief Executive Officer stated, "The communities that we serve continues to experience a downturn in housing and real estate related markets, especially as it relates to acquisition, construction, and development. As a result of this weakening, and the fact that our capital levels are more strained than in prior periods, we have considerably slowed down our loan origination activity. Gross loans decreased during the first nine months of 2008 from $148.5 million at December 31, 2007 to $136.3 million at September 30, 2008. Our Board of Directors, Officers, and employees remain committed to maintaining a sound financial institution during these difficult times. We will continue to monitor our loan quality and will make adjustments to our reserves as necessary to adequately cover any potential losses."

First Coweta Bank opened for business on July 12, 2004. The bank's stock is publicly traded over the counter under the symbol "FCWT."

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