Augusta-based Georgia-Carolina Bancshares Inc. reported net income of $395,000, or 11 cents per share, for the first three months of the year, compared to $752,000, or 21 cents per share, for the first quarter of 2008.
"Our net income declined compared to the first quarter of last year due to a reduced net interest margin and increased provision for loan losses. The steep decline in interest rates during the last quarter of 2008 has compressed most banks' net interest margins,â said President Remer Brinson III.
Mr. Brinson said the banking company increased its provision for loan losses from $237,000 in the first quarter of 2008 to $627,000 for the first quarter of 2009 due to the weakness in the national economy.
"Deposit growth remained strong with total deposits increasing 4.8 percent during the quarter to $395 million. Loan growth was flat during the first quarter of 2009 due to soft loan demand in our market," Mr. Brinson said.
The bank reported total deposits of $395 million, up from $377 million at the end of 2008.
The bank reported $468 million in assets, an increase of $8 million since the end of 2008.
"In addition, we remain 'well-capitalized' by regulatory standards, all of our capital ratios improved during the quarter,â Mr. Brinson said.
During the first quarter, First Bank of Georgia celebrated the 20 year anniversary of the opening of the Hill Street Office in Thomson, Georgia and the 10 year anniversary of entering the Augusta market with the opening of its Daniel Village office.