Cherokee Banking Company Announces Earnings for 2007 

CANTON, Ga., April 15 /PRNewswire-FirstCall/ -- Cherokee Banking Company (BULLETIN BOARD: CHKJ) , the holding company of Cherokee Bank, N.A., reported earnings of $489,378 for the year 2007, compared to $1,525,603 in 2006.

   Dennis Burnette, President and CEO, said, "The unexpected downturn in the real estate market combined with the added expense incurred with the opening of the Woodstock Office threw us further off our strategic plan to increase earnings than we expected.

   "The bank's reach was extended with our new full service Woodstock Office. We now have offices on I-575 near Exit 20 (North Canton), Exit 14 (South Canton) and Exit 7 (Woodstock). Loans grew 18% in 2007 and over 70% of our loan growth came from the new Woodstock Office.

   "The quality of the bank's loan portfolio remains exceptional. At year end, our Non-performing Assets as a Percentage of Total Assets was less than 1%. The average for community banks in Metropolitan Atlanta was over 2%, with many banks at over 4%. The bank set aside additional funds in the fourth quarter just in case there is further deterioration in the real estate market. Consequently, the loan loss.

   "Increasing assets in 2008 will be a challenge. While we are well positioned with an excellent staff, a strong and local Board of Directors and three locations in a fast-growing county, the Downturn in the Real Estate Market may extend the challenge of increasing assets into 2009," Burnette concluded.

   Cherokee Banking Company, a bank holding company, owns 100% of the outstanding common stock of Cherokee Bank, N.A., which operates in the Cherokee County and Metropolitan Atlanta, Georgia area. The bank operates two offices in Canton and an office in Woodstock. The Company's stock trades on the OTC bulletin board under the symbol "CHKJ.OB".