First Coweta Bank has reported a net income of $671,240 for the year ended December 31, 2007, a decrease of 6% compared to $712,647 for the same period ending December 31, 2006.
The decrease was due to increased allocation to provision for loan loss reserve from $560,000 in 2006 to $1 million in 2007.
The bank had total assets of $179 million as of December 31, 2007, an increase of 48% compared to year-end December 31, 2006. As of December 31, 2007, the non-performing assets increased $838,000 and other real estate owned (foreclosed properties) increased over $2.3 million compared to 2006.
Mike Barber, president and CEO, said: The earnings decrease in 2007 was primarily due to the increase in the ‘provision for loan losses’. This increased allocation was due to management’s evaluation of certain risks associated with the present economic environment.