WGNB Corp. Announces First Quarter 2008 Earnings

CARROLLTON, Ga.--(Business Wire)--
WGNB Corp. (NASDAQ:WGNB), the holding company for First National
Bank of Georgia, announced its 2008 first quarter earnings of
$1,830,971, or $0.30 per diluted share, compared to its 2007 first
quarter earnings of $1,980,404, or $0.39 per diluted share, a decrease
of $149,433, or 7.5 percent.

The amount of non-performing assets stands at $54.5 million, or
8.0 percent of total loans plus foreclosed property, or 6.2% of total
assets, as of March 31, 2008. In the first quarter of 2008, the
Company sold $10.0 million of non-performing assets; however, we
recognized $22.5 million of new non-performing loans. As of the date
of this press release, we have $4.5 million of non-performing assets
under contract for sale.

As disclosed in the Company's press release dated March 27, 2008,
the impact of the further impairment we recognized in the first
quarter of 2008 was treated as a material subsequent event because at
the time of the impairment determination we had not yet issued our
financial statements for the year ended December 31, 2007. Thus, the
related charge down, provision and charge off of additional interest
was accounted for in our December 31, 2007 financial statements.

"We will continue to report to our shareholders with regard to the
status of the recognition and disposition of non-performing assets and
our regulatory capital standards as material events take place," said
H. B. "Rocky" Lipham, III, Chief Executive Officer. "The reduction in
non-performing assets and the maintenance of safe and sound levels of
capital remain the focus of management and the Board of Directors
during this period of economic uncertainty."

In the first quarter of 2008, total assets grew by $2.5 million,
total loans grew by $5.3 million, or 0.8 percent, and total deposits
decreased by $3.3 million, or 0.5 percent. Management, working to
diversify asset growth to fields unrelated to the development and
residential construction industry, has reduced construction and
development loans by 9.0 percent during the quarter.

Lipham added, "Our level of earnings in 2008 will be hindered for
the foreseeable future because of this downturn in construction and
development lending. The downturn is not behind us, and we will
continue to conduct our loan review, valuation process and assessment
of capital levels in a prudent manner."

WGNB Corp. has changed its annual meeting date from Tuesday, May
13, 2008 to Tuesday, June 10, 2008 at 3:00 pm. The annual meeting will
be held at the Theatres of Carrollton, which is located at 1135
Bankhead Highway, Carrollton, Georgia 30116.

"WGNB Corp. remains well-capitalized and will continue to take
prudent courses of action," said Lipham in closing. "Our commitment
remains steadfast to providing customers with the level of service
they expect and deserve and to continue to be the community bank in
west Georgia. We look forward to discussing with our shareholders at
the upcoming annual meeting future plans for strengthening our
business."

About WGNB Corp.

WGNB Corp. stock is traded on the NASDAQ Capital Market under the
ticker, "WGNB". First National Bank of Georgia has seventeen locations
in Carroll, Douglas, Haralson, and Coweta counties and total assets of
$886 million. The Bank is the largest and most enduring locally-owned
community bank headquartered in Carroll County.

For more information about WGNB Corp and First National Bank of
Georgia, visit our investor relations page on our website,
www.wgnb.com or www.fnbga.com. Interested parties may contact Steven
J. Haack, Chief Financial Officer, via e-mail at shaack@fnbga.com. If
you prefer to contact us by mail you may do so by contacting Investor
Relations at the mailing address of WGNB Corp., P.O. Box 280,
Carrollton, Georgia 30112 to request information.

Safe Harbor

Except for financial information contained in this press release,
the matters discussed may consist of forward-looking information under
the Private Securities Litigation Reform Act of 1995. The accuracy of
the forward-looking information is necessarily subject to and involves
risk and uncertainties, which could cause actual results to differ
materially from forward-looking information. These risks and
uncertainties include but are not limited to, general economic
conditions, competition and other factors included in filings with the
Securities and Exchange Commission.

When used in this release, the words "believes," "estimates,"
"plans," "expects," "should," "will," "may," "might," "outlook,"
"likely," and "anticipates" or similar expressions as they relate to
WGNB Corp. (including its subsidiaries), or its management are
intended to identify forward-looking statements.

The Company, from time to time, becomes aware of rumors concerning
the Company or its business. As a matter of policy, the Company does
not comment on rumors. Investors are cautioned that in this age of
instant communication and Internet access, it may be important to
avoid relying on rumors and unsubstantiated information regarding the
Company. The Company complies with Federal and State law applicable to
disclosure of information concerning the Company. Investors may be at
significant risk in relying on unsubstantiated information from other
sources.

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WGNB Corp.
Financial Highlights
(In Thousands, Except Per Share Data)

For the Year to Date March 31, 2008 March 31, 2007
(unaudited) (unaudited)
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Total interest income $ 14,131 $ 11,892
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Total interest expense 6,819 5,619
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Net interest income 7,312 6,273
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Provision for loan loss 750 375
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Net interest income after provision 6,562 5,898
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Total other income 2,435 1,733
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Total other expense 6,581 4,697
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Earnings before income taxes 2,416 2,934
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Income taxes 585 954
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Net earnings $ 1,831 $ 1,980
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Per Share Data:
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Common shares outstanding 6,057,594 5,003,790
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Weighted average shares outstanding 6,057,594 5,001,286
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Weighted average diluted shares
outstanding 6,099,094 5,041,575
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Net earnings 0.30 0.40
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Diluted net earnings 0.30 0.39
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Cash dividends declared year to date 0.21 0.20
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Book value 13.32 10.72
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Tangible book value 8.49 10.72
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At Period End:
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Total assets 886,179 608,018
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Total loans 663,418 497,088
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Earning assets 760,567 575,648
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Nonperforming assets 54,533 6,294
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Intangible assets 29,318 -
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Deposits 703,083 496,356
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Junior subordinated debentures 10,825 -
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Stockholders' equity 80,717 53,655
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Tangible stockholders' equity 51,399 53,655
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Key Performance Ratios Year to Date:
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Return on average assets 0.83% 1.31%
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Return on average equity 9.01% 14.79%
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Return on average tangible equity 14.08% -
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Net interest margin, tax equivalent 3.79% 4.49%
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Dividend payout ratio 70.00% 42.76%
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Efficiency ratio 67.52% 58.66%
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Asset Quality Ratios:
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Non-performing assets/loans & OREO 8.04% 1.26%
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Loan loss reserve/total loans 1.98% 1.21%
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Loan loss reserve/non-performing
assets 24.10% 232.72%
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Loan loss reserve/total capital 11.19% 11.19%
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NCO's/average loans less than 0.01% 0.02%
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Capital Ratios:
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Tangible equity/tangible assets 6.00% 8.82%
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Tier 1 leverage ratio 7.01% 9.40%
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Total risk based capital ratio 10.24% 11.19%
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WGNB Corp., Carrollton
Steven J. Haack, 770-832-3557
shaack@fnbga.com
or
Media Contact for WGNB
Charity Aaron, 770-214-7208
caaron@fnbga.com

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