PCBN Piedmont Community Bank Group Inc (CE)

Piedmont Community Bank Group, Inc. (OTC Bulletin Board: PCBN) today announced results for the third quarter of 2008 which included a 90% decrease in net income as compared to the same period of 2007 and a 33% decrease in net interest income as compared to the same period of 2007. Total net income was $22,458 for the third quarter of 2008 as compared to $229,753 for the third quarter of 2007, a decrease of $207,295, or 90%. Net interest income for the third quarter of 2008 was $1,041,812, a decrease of $511,020 or 33% as compared to the same quarter last year. The majority of our loans reprice immediately in response to rate cuts by the Federal Reserve whereas the majority of our deposits do not. As a result the decrease in net interest income is primarily attributable to the multiple decreases in interest rates by the Federal Reserve over the past 9 months. �Our earnings continue to be impacted by the downturn in the economy and measures taken by the Federal Reserve in their attempts at stabilization�, stated CEO Drew Hulsey. �We continue to monitor and manage our loan portfolio closely to help minimize problem situations. We have intentionally slowed our loan growth during the third quarter to help preserve capital and maintain our well capitalized status.� Consolidated assets at September 30, 2008 reached $238 million, an increase of 12% since December 31, 2007. Total gross loans and total deposits grew 11% and 11 %, respectively, during the nine month period with gross loans totaling $197 million and deposits totaling $200 million at September 30, 2008. About Piedmont Community Bank Group, Inc.: Piedmont Community Bank Group, Inc. is the holding company for Piedmont Community Bank, a community bank headquartered in Gray, Georgia (the �Bank�). In addition to its main office in Gray, the Bank now operates four branch offices at the following locations: 1611 Bass Road and 4511 Forsyth Road, both in Macon, Georgia, 1040 Founders Row in Greensboro, Georgia and 76 E. Johnston Street in Forsyth, Georgia. Piedmont Community Bank Group�s common stock is traded in the over-the-counter market under the symbol �PCBN�. The Bank�s primary service area is Jones, Bibb, Baldwin, Putnam, Greene, Houston, and Monroe counties. Forward-Looking Statements Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based upon management�s belief as well as assumptions made by, and information currently available to, management pursuant to �safe harbor� provisions of the Private Securities Litigation Reform Act of 1995. Our actual results may differ materially from the results anticipated in forward-looking statements due to a variety of factors, including governmental monetary and fiscal policies, deposit levels, loan demand, loan collateral values, securities portfolio values, interest rate risk management, the effects of competition in the banking business from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market funds and other financial institutions operating in our market area and elsewhere, including institutions operating through the Internet, changes in governmental regulation relating to the banking industry, including regulations relating to branching and acquisitions, failure of assumptions underlying the establishment of reserves for loan losses, including the value of collateral underlying delinquent loans, and other factors. We caution that such factors are not exclusive. We do not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, us.