WGNB Corp. to Bolster
Provision for Loan Losses Due to Further Deterioration in Economic
GA – WGNB Corp. (Nasdaq: WGNB), the holding company for First National Bank of
Georgia, announced today that it will record an additional provision of $6.4
million for the quarter ended December 31, 2007, as well as an increase in the
level of non-performing assets and charge-offs as of December 31, 2007.
Management has charged-off interest on impaired loans in the amount of $162
thousand and charged down other real estate owned by $381 thousand as of
December 31, 2007. The continued low sales volume in its residential real estate
markets has directly contributed to further asset quality deterioration since
December 31, 2007.
the week of March 17, 2008, as a result of its aggressive loan review and
grading functions and regular discussions with certain borrowers, management
determined that certain loans recorded on its balance sheet as of December 31,
2007 had subsequently become impaired. This material increase in problem loans
qualifies as a material subsequent event. WGNB Corp. will recognize the impact
of the increase in impaired loans as of and for the period ended December 31,
this material subsequent event, non-performing assets, which include non-accrual
loans, other real estate owned and loans 90 days past due, now total $58.3
million, or 8.69% of total loans plus other real estate owned, as of December
31, 2007. WGNB Corp.’s provision for loan losses totaled $10.2 million for
fiscal year 2007, and net charge-offs totaled $5.1 million for the same period.
WGNB Corp.’s revised ratio of loan loss reserves to total loans ratio is
additional loan loss provision and the related adjustments are expected to
decrease net earnings for 2007 by $4.3 million, or $0.77 cents per diluted
share, as of December 31, 2007. After the additional loan loss provision, net
earnings for 2007 total $3.0 million, or $0.55 cents per diluted share. WGNB
Corp. expects to remain well-capitalized as of December 31, 2007.
national and local economies continue to present challenges for WGNB Corp. and
our customers. The slow-down in the sale of subdivision lots has affected our
construction and residential development borrowers’ ability to service their
debt. Therefore, management actively reviews the loan portfolio for impairment
and evaluates foreclosed property for net realizable value in its impairment
process,” stated H. B. “Rocky” Lipham, III, Chief Executive Officer of WGNB
Corp. “As we continue to manage the Company through the current credit cycle, we
will not lose sight of WGNB Corp.’s commitment to strong capital levels, safe
and sound banking practices and a high-level of customer
are certainly not satisfied with our results in 2007 and displeased with the
continued asset quality deterioration in our operating markets, we are
diligently working to communicate our financial results in both a timely and
accurate manner,” stated Lipham in conclusion.
Corp. plans to report its results for the first quarter of 2008 during the week
of April 14, 2008.
announcement will not impact the Company’s previously announced dividend of
$0.21 cents per share, which will be paid on April 4, 2008.
Corp. common stock is traded on the NASDAQ Capital Market under the symbol,
“WGNB.” First National Bank of Georgia, its sole subsidiary, has 17 locations in
Carroll, Haralson, Douglas and Coweta counties, and 24 ATM locations in the west
Georgia area. Total assets for the Bank are $884,000,000. For more information
about First National Bank of Georgia, visit the Bank’s website at www.fnbga.com.
for historical information contained in this press release, the matters
discussed consist of forward-looking information under the Private Securities
Litigation Reform Act of 1995. The accuracy of the forward-looking information
is necessarily subject to and involves risk and uncertainties, which could cause
actual results to differ materially from forward-looking information. These risk
and uncertainties include but are not limited to, general economic conditions,
competition and other factors, included in filings with the Securities and
in this release, the words “believes,” “estimates,”
“plans,” “expects,” “should,” “will,” “may,” “might,” “outlook,” and
“anticipates” are similar expressions as they relate to WGNB Corp.
(including its subsidiaries), or its management are intended to identify
Company, from time to time, becomes aware of rumors concerning the Company or
its business. As matter of policy, the Company does not comment on
rumors. Investors are cautioned that in this age of instant
communication and Internet access, it may be important to avoid relying on
rumors and other unsubstantiated information regarding the
Company. The Company complies with Federal and State laws applicable
to the disclosure of information concerning the Company. Investors
may be at significant risk in relying on unsubstantiated information from other
have questions about this or other financial information please contact Steven
J. Haack, Chief Financial Officer, via e-mail at email@example.com or at WGNB Corp.,
P.O. Box 280, Carrollton, Georgia 30112.
The following information was filed by Wgnb Corp (WGNAP) on Monday, March 31, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.