First Bank of Georgia holding company reports $1.9 million quarterly loss

The holding company that operates First Bank of Georgia reported a quarterly loss Wednesday of about $1.9 million, or 55 cents per share, as it set aside more money for loan losses.

Those second-quarter earnings for Augusta-based Georgia-Carolina Bancshares, Inc compared to a net profit of $899,000, or 26 cents per share, during the same period a year earlier.

"During the second quarter of 2010, we significantly increased our provision for loan and lease losses in light of the continued weakness in the economy and significantly reduced our level of non-performing assets," said Remer Brinson III, the president and chief executive officer.

He said asset quality has become particularly important given the current economic climate.

The company increased provisions for loan losses to about $4.7 million in the second quarter, up from $613,000 for loan losses in the year-earlier period.

Brinson said the company expects to generate positive earnings for the remaining two quarters and turn a net profit for the year.

"Our core earnings, however, remain strong as does our capital position," he said.

Georgia-Carolina Bancshares reported total assets of $490.7 million as of June 30.

Total deposits increased 2.5 percent to $415.3 million in the first two quarters.

First Bank of Georgia has bank branches in Richmond, Columbia and McDuffie counties, and mortgage origination offices in Augusta, Savannah and Jacksonville, Fla.