Southwest Georgia Financial Corp. in Moultrie said Monday that it expects to take a $1 million loss this quarter on the sale of a property and write down as much as $4.3 million of its investment in Fannie Mae and Freddie Mac preferred shares.
As a result, the $270 million-asset company could have its earnings for the quarter wiped out. It had earned $763,000 last quarter.
Southwest Georgia said the company and its banking unit would remain well capitalized, despite the expected losses, so it intends to pay a quarterly dividend of 14 cents a share on Oct. 31.
Southwest Georgia said the $1 million loss is related to a foreclosed commercial property sold by its mortgage unit.
The company owns $4.3 million of Fannie and Freddie stock, which makes up about 4% of its investment portfolio. It said the amount of the writedown is uncertain but could be as high as the entire value of the shares.
