Appalachian Bancshares has reported that its net loss for the fourth quarter of 2008 was $831,000, or $0.15 per diluted share, compared with net income of $1.1 million, or $0.21 per diluted share, for the same quarter in 2007.
Net loss for the year ended December 31, 2008 was $1.61 million, or $0.30 per diluted share, as compared to $5.57 million, or $1.06 per diluted share, for the year ended December 31, 2007.
According to the company, the decrease in net income for the fourth quarter and the full year 2008 was primarily due to its provision for loan losses of $3.8 million and $10.9 million, respectively, which represent increases of $1.3 million and $6.2 million, respectively, when compared to the same periods in 2007.
The company’s net interest margin was 2.85% for the fourth quarter ended of 2008, compared to 4.47% for the same quarter in 2007. During 2008, net interest margin was 3.61% compared to 4.68% for 2007.
Total revenue, net of interest expense, was $8.5 million for the fourth quarter of 2008, compared to $11 million, for the fourth quarter of 2007, a decrease of 22.9%. During 2008, total revenue, net of interest expense, was $39.2 million compared to $42.8 million for 2007, a decrease of 8.5%.
Tracy Newton, president and CEO of Appalachian Bancshares, said: The fourth quarter challenged us to our core. The volatile financial events that arose during the quarter created an environment of fear and uncertainty causing a lack of consumer confidence and conservative spending in our markets. Based on this recent turn of events, we are continuing to make adjustments as necessary with our core business plan of operating in a realistic manner.
