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Britton & Koontz hurt by loan losses

NATCHEZ — The board of directors of Britton & Koontz Capital Corporation reported net income for the year ended Dec. 31, 2009, of $2.3 million, or $1.06 per basic and diluted share, compared to $3.5 million, or $1.65 per basic and diluted share, for 2008.

Net income for the quarter ended Dec. 31, 2009, was $569,000, or $.27 per basic and diluted share, compared to $865,000, or $.41 per basic and diluted share, for the fourth quarter of 2008.

Non-performing assets, including non-accrual loans, loans past due 90 days or more and other real estate, increased to $10.5 million, or 2.67 percent of total assets, at Dec. 31, 2009, from $8.3 million, or 2.11 percent of total assets, at Sept. 30, 2009, and $5 million, or 1.21 percent of total assets, at Dec. 31, 2008. The increase in non-performing assets during the fourth quarter of 2009 is primarily related to three additional credits relating to one customer relationship in the amount of $2.3 million. These loans are secured by commercial real estate and the bank is in the process of foreclosing on the properties. However, the customer has filed for Chapter 11 bankruptcy protection and it is expected the foreclosure process will be delayed at least until the middle of 2010.

Net charge-offs as a percentage of average loans was .87 percent at Dec. 31, 2009, compared to .82 percent at Sept. 30, 2009, and .34 percent at Dec. 31, 2008. The company added $2.4 million to its allowance for probable loan losses in 2009, which offset net charge-offs of $1.9 million during the year. The increase in net charge-offs in 2009 represents an increase over 2008 of $1.2 million. The ratio of the allowance for probable loan losses to total loans increased to 1.29 percent at Dec. 31, 2009, compared to 1.06 percent at Dec. 31, 2008.

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