Georgia Bank & Trust Co. saw its quarterly profit grow 9.1 percent on the back of its growing core business of making commercial and retail loans, more than compensating for a drop in fees generated by mortgage loans.
Georgia Bank Financial Corp., the bank's parent, said Friday that profit for the second quarter, running April through June, rose to $2.15 million from a little less than $2 million in the same period last year. That comes to 41 cents a share compared with 37 cents last year.
For the first six months of this year, profit increased 8.7 percent to $4.2 million.
Dan Blanton, the bank's president and CEO, said growth reflected a rise of $40.7 million in loans to companies and individuals, bringing the bank's loan portfolio to $461.8 million.
The ability to lend more money stemmed from an increase in deposits from the banks' seven branches. The difference between the two, deposits and loans, is called the spread, and that's what fueled Georgia Bank & Trust's growth.
"We feel like these results show our core earnings are solid. Our loan volume shows we are producing well," Mr. Blanton said. "While mortgages are great, our bank isn't dependent on mortgage growth to grow and be profitable."
As interest rates head higher, so do mortgage rates. That's cooled the mortgage market, resulting in a 15 percent decline in fees in the first six months of 2004, from $7.2 million last year to $6.1 million this one.
Total assets for the area's biggest community bank grew to $678.6 million, up from $630.6 million at the end of the first quarter this year.
Georgia Bank & Trust plans to open its eighth full-service branch at the Cotton Exchange building Sept. 16. This will be its first branch in the downtown area.
Reach Matthew Mogul at (706) 823-3352 or matthew.mogul@augustachronicle.com.
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