Originally created 11/07/96

Allied Bank of Georgia third-quarter earnings



Special circumstances put a dent in the third-quarter earnings of the holding company for Allied Bank of Georgia, Allied Bankshares Inc. of Thomson announced.

A one-time charge linked to the federal savings and loan fund and an increase in funds for the provision of loan losses lead to a 40-percent drop in the third quarter over third quarter 1995.

Net income for the quarter that ended Sept. 30 was more than $1.35 million, or 11 cents per share, compared with about $2.25 million, or 18 cents per share, for third quarter 1995, announced Boone A. Knox, chairman and chief executive officer, in a news release.

Allied incurred a one-time charge of $692,000 for a special Federal Deposit Insurance Corp. insurance premium assessment related to deposits insured by the Savings Association Insurance Fund and added $400,000 to the provision for loan losses compared with $85,000 for third quarter 1995, the company said. Net income for the nine months ended Sept. 30, was more than $5.44 million, or 43 cents per share, compared with more than $6.73 million, or 53 cents per share, for the nine months ended Sept. 30.

Also, Allied's board of directors declared a regular quarterly cash dividend of 9 cents per share payable on Dec. 1 to stockholders of record as of Nov. 14. Allied Bankshares, whose stock is traded on the Nasdaq Stock Market, agreed to be acquired by Birmingham, Ala.-based Regions Bank. The acquisition is expected to close the first quarter of 1997.