American Patriot Financial Group, Inc., the holding company for American Patriot Bank, has reported a net income of $133,565 for the first quarter of 2008, compared with $101,091 during the same period of 2007.

The company attributed the 32.12 percent increase in its net income to American Patriot Bank's "entry into the Blount County market, improved asset quality and increased operating efficiency."

American Patriot Financial Group, Inc. is a $113 million one-bank holding company that owns all of the stock of American Patriot Bank.

American Patriot Bank maintains four office locations:three in Greeneville, and one in Maryville.

The bank said in a press release that its interest income for the first quarter of 2008 rose by 16 percent to $991,813 from $990,207 in the same quarter for the previous year.

The bank said, "This was a result of an increase in earning assets from $92,049,826 to $101,835,330, most of which is attributed to the company's entry into the Blount County market."

Jerry Simmerly, American Patriot Bank's president and CEO, said, "Despite the interest rate challenges faced as a result of the Federal Reserve lowering interest rates 2 percent during the first quarter of 2008, the company only experienced an initial decline in net interest margin, but has since seen the net interest margin recover to 3.87 percent as we move to a more interest-rate-neutral position."

Simmerly added, "With steady asset growth particularly out of our Maryville location, combined with improving asset quality and positive results from our operating efficiency initiatives, the company has posted one of its best quarters ever. All of the American Patriot Bank team should be congratulated."

As of March 31, the company reported its total assets increased 11.87 percent to $112,788,147, compared with $100,821,615 on March 31, 2007.

Net loans increased 23.41 percent to $97,947,686, compared with $79,367,037, while total deposits increased 15.76 percent to $101,123,191 from $87,353,776 for the same time period in 2007.

Simmerly said, "I am very pleased with the bank's first quarter results, particularly given the economic challenges the banking and financial sector has faced over the last year."