Andrew Johnson Bank reported pre-tax earnings of $1,682,000 and net after-tax earnings of $1,100,000 for the first nine months of 2009.

That compares to earnings of $2,291,000 and $1,374,680, respectively, for the same periods last year.

Bill Hickerson, the bank's president and CEO, said in a press release, "Andrew Johnson Bank remains profitable and well capitalized," despite "the decline in the bank's earnings."

He said the earnings decline "can be attributed to heavier-than- expected loan losses brought about by the troubled economy and much-higher-than expected insurance premiums that the FDIC is charging all banks."

Hickerson added, "The bank has experienced exceptional core deposit growth of 13.9 percent for the year that has provided the bank with excellent liquidity to fund its loans and investments while enabling the bank to increase its market share in deposits."

Andrew Johnson Bank's board of directors has declared a 75-cent per share dividend for the third quarter of 2009.

A bank press release said, "This payout represents the same dividend amount paid for the first two quarters of 2009 and for all quarters in 2008.

The bank's release added, "Rather than accept the Federal Government's Troubled Asset Relief Program (TARP) money, the bank opted instead to secure a $4 million line of credit from a regional correspondent bank that has provided the bank's parent company, Andrew Johnson Bancshares, Inc. with additional funds that can be easily converted to equity capital in the bank, if needed.

"This is significant in that many community banks are experiencing extreme difficulty in raising equity capital in the current economic environment." the release said.

According to Hickerson, Andrew Johnson Bank's management "continues to focus on asset quality, specifically, non-performing assets which have declined from 1.91 percent of total assets at the end of the second quarter to 1.40 percent of total assets at the end of the third quarter."

With its headquartered in Greeneville, Andrew Johnson Bank is a privately-owned community bank chartered in 1975 with assets of approximately $258 million.

The bank has seven full-service offices with locations in Greeneville, Morristown, Jonesborough and Johnson City and a loan production office that recently opened in Cleveland, Tenn.

In addition, the bank provides wealth management and insurance services through its subsidiary, Andrew Johnson Insurance Services.

Since Andrew Johnson Bank is privately-owned, its stock is not publicly traded.