The $348 million-asset Citizens Bancshares Corp. in Atlanta said Thursday that it lost $164,000 in the second quarter after posting a $1 million provision for losses on commercial real estate loans.
In the second quarter of 2007 the company earned $670,000 and did not post a provision.
Despite the loss, Citizens remained well capitalized, with Tier 1 and total risk-based capital ratios of 14% and 13%, respectively.
Gross loans fell 4% from March 31, to $218 million, on slower loan growth and tightened underwriting standards. Citizens offset the drop in loan volume by increasing its investment securities portfolio by $5 million, from the first quarter, and by $20 million from a year earlier. As a result, investment income rose 14% from a year earlier, to $126,000.
Citizens shares closed at $7.79 Thursday, down 4.4%.
