Georgia Bank Sees Significant Drop in Commercial Mortgage Revenue

The credit crisis has impacted commercial mortgage banking revenues at Southwest Georgia Financial Corp., Moultrie, Ga., which saw a 54.3% decline in the first quarter of 2009. The bank holding company generated $313,000 in income from mortgage banking services in the first quarter of 2009, compared to the $685,000 generated the same time a year prior. According to the company, the drop in revenue was due to the credit crisis restricting mortgage loan funding opportunities. "Our first quarter results reflect the challenging economic environment that continues to negatively impact us," said DeWitt Drew, the company's president and chief executive, adding that the company increased its loan loss provision. "However, we are encouraged by the 19% increase in total loans year-over-year."