Newnan Coweta Bancshares Inc. in Georgia said its auditor might issue a warning about its ability to survive.

In a filing last week with the Securities and Exchange Commission, the $230 million-asset company said that it would not file its annual report on time, and that it anticipates reporting a significant loss for the fourth quarter.

An agreement with the Federal Reserve Board disclosed in September requires Newnan Coweta to improve its board oversight and underwriting standards, submit a policy on conflicts of interest and maintain capital.

Its Neighborhood Community Bank has not been well capitalized for several quarters, according to the Federal Deposit Insurance Corp. During the fourth quarter its total risk-based capital ratio fell 86 basis points, to 8.69% at yearend. The ratio must be at least 10% for an institution to be considered well capitalized.

Last year Neighborhood Community lost $7 million, including $1.7 million in the fourth quarter, according to FDIC data.

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