First Franklin Corporation, the parent of Franklin Savings and Loan Company, has recorded a net loss of $1.41 million ($0.84 per basic share) for the year ended December 31, 2008, compared to net income for the year ended December 31, 2007 of $456,000 ($0.27 per basic share).
 
Q4 2008 loss was $597,000 ($0.36 per basic share) compared to net income of $89,000 ($0.05 per basic share) for Q4 2007.
 
The decrease in 2008 net income before taxes when compared to 2007 is primarily the result of - a $86,000 decline in net interest income before loan loss provisions, a $2.40 million increase in loan loss provisions, a $326,000 increase in losses on the sale of repossessed assets, $115,000 of expenses related to a data breach reported mid-year, and an increase of $85,000 in operating expense.
 
Based on the continued economic uncertainty in the global economy, the board of the company has declared no quarterly cash dividend for the first quarter of 2009.
 
Thomas Siemers, President and CEO, said: "The decision to suspend the quarterly cash dividend is based on our desire to retain capital during this challenging economic environment."