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FIRST NATIONAL BANCORP REPORTS FIRST QUARTER 1992 RESULTS

 FIRST NATIONAL BANCORP REPORTS FIRST QUARTER 1992 RESULTS
 GAINESVILLE, Ga., April 10 /PRNewswire/ -- First National Bancorp, Gainesville, Ga. (NASDAQ-NMS: FBAC), today announced preliminary first quarter 1992 results.
 Earnings were $4.7 million or $.49 per share compared to $5.0 million or $.52 per share for the first quarter of 1991. Total assets reached a record $1.83 billion at March 31, up 6.35 percent over March 31, 1991. The return on average assets for the quarter was 1.05 percent and the return on average equity was 11.25 percent. The company maintains a strong capital ratio with primary capital of 10.22 percent of total assets at quarter end.
 President and CEO Richard McNeece reported that the results included those of the $157.4 million asset First National Bank of Paulding County which merged with the company at the end of January. "We are pleased to have Mickey Womble, president and CEO, and his team join the company and we are excited about the opportunities in the Paulding County market," McNeece stated.
 The modest core asset growth is a direct result of the soft north Georgia economy which continues to impact the company's customers. While the level of nonperforming assets at period end were $38.8 million and have remained stable for three consecutive quarters, the provision for loan losses was increased by $1.7 million to $3.1 million compared to the first quarter of 1991. This further strengthened the period end allowance for loan losses to 1.95 percent of loans (excluding first mortgage loans held for sale) compared to a 1.88 percent as of Dec. 31, 1991, and 1.85 percent on March 31, 1991. The allowance coverage also strengthened as the period end allowance for loan losses/nonperforming loan ratio of 67 percent compared to 63 percent as of Dec. 31, 1991.
 First quarter results were in line with the economic environment but slightly below management expectations. The net interest margin of 4.82 percent compared to 4.83 percent in 1991 and has remained reasonably stable for the past nine quarters. The higher provision for loan losses previously described reduced first quarter earnings but better positioned the company for the remainder of the year. The lower mortgage interest rates of the last 90 to 120 days stimulated a strong increase in mortgage loan applications, resulting in higher than anticipated prepayment experience in the mortgage loans serviced for others and higher provisions for market losses on first mortgage loans held for sale. This combination more than offset the growth in fee income from mortgage loan originations.
 First quarter performance was not reflective of the company's core earnings power. Management expects the company to return to a more normal level of profitability with improvement in asset quality, particularly as the provision for loan losses moves to a more normal level, mortgage loan prepayment experience declines and gains on bulk and flow-through servicing sales are recognized.
 A likely improvement in the fundamental economic strength in the north Georgia economy would favorably impact asset quality, margins and core balance sheet growth.
 FINANCIAL HIGHLIGHTS
 FIRST NATIONAL BANCORP AND SUBSIDIARIES
 (In thousands, except per share data)
 For the qtrs. ended 3/31 1992 1991 Change Percent
 Net income $ 4,689 $ 5,046 $ (357) (7.07)
 Net interest income $ 18,594 $ 17,211 $ 1,383 8.04
 Net interest income (FTE) $ 19,814 $ 18,348 $ 1,466 7.99
 Non interest income $ 7,408 $ 5,388 $ 2,020 37.49
 Non interest expenses $ 16,711 $ 14,527 $ 2,184 15.03
 Provision for loan losses $ 3,144 $ 1,439 $ 1,705 118.49
 Per share data:
 Net income $ 0.49 $ 0.52 $(0.03) (5.77)
 Dividends declared $0.225 $ 0.19 $0.035 18.42
 Book value $17.50 $16.24 $ 1.26 7.76
 Weighted avg. shares
 outstanding 9,649,238 9,642,491
 Shares outstanding at
 quarter end 9,650,991 9,642,491
 Financial ratios:
 Return on average assets 1.05 pct. 1.21 pct.
 Return on avg. shareholders'
 equity 11.25 pct. 13.29 pct.
 Net interest margin 4.82 pct. 4.83 pct
 Primary capital/assets 10.22 pct. 10.09 pct.
 Allowance for loan losses/
 loans, net of unearned
 income:
 Including mortgage loans
 held for sale 1.66 pct. 1.70 pct.
 Excluding mortgage loans
 held for sale 1.95 pct. 1.85 pct.
 Selected Balances as of March 31:
 Total assets $1,827,065 $1,717,953 $109,112 6.35
 Earning assets $1,674,016 $1,586,735 $ 87,281 5.50
 Loans, net of unearned income:
 Including mortgage loans
 held for sale $1,201,846 $1,096,272 $105,574 9.63
 Excluding mortgage loans
 held for sale $1,022,022 $1,005,884 $ 16,138 1.60
 Allowance for loan
 losses $ 19,894 $ 18,588 $ 1,306 7.03
 Investment securities $ 371,758 $ 376,262 $( 4,504) (1.20)
 Deposits $1,548,276 $1,483,573 $ 64,703 4.36
 Other interest-bearing
 funds $ 99,792 $ 65,280 $ 34,512 52.87
 Shareholders' equity $ 168,855 $ 156,624 $ 12,231 7.81
 Average balances for quarter:
 Total assets $1,789,951 $1,684,517 $105,434 6.26
 Earning assets $1,652,093 $1,540,916 $111,177 7.21
 Loans, net of unearned income:
 Including mortgage loans
 held for sale $1,169,192 $1,061,078 $108,114 10.19
 Excluding mortgage loans
 held for sale $1,018,460 $ 987,790 $ 30,670 3.10
 Allowance for loan
 losses $ 19,799 $ 18,439 $ 1,360 7.38
 Investment securities $ 372,038 $ 453,790 $(81,752) (18.02)
 Deposits $1,565,249 $1,446,057 $119,192 8.24
 Other interest-bearing
 funds $ 98,889 $ 70,578 $ 28,311 40.11
 Shareholders' equity $ 167,706 $ 153,975 $ 13,731 8.92
 1992 Pct. of 1991 Pct. of (a)
 loans outst. loans outst.
 Asset quality:
 Non performing loans:
 Non accrual loans $29,493 2.44 $20,753 1.89
 Renegotiated loans $ 189 0.02 $ 285 0.03
 Total non performing
 loans $29,682 2.46 $21,038 1.92
 Other real estate $ 9,167 0.75 $ 5,728 0.52
 Total non performing
 assets $38,849 3.21 $26,766 2.44
 Loans past due 90 days
 or more $ 2,800 0.23 $ 4,019 0.37
 (a) Loans, net of unearned Income plus ORE, where applicable.
 -0- 4/10/92
 /CONTACT: Pete Miller, chief financial officer of First National Bancorp, 404-535-5566/
 (FBAC) CO: First National Bancorp ST: Georgia IN: FIN SU: ERN


EA-BR -- AT006 -- 7246 04/10/92 12:59 EDT
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