The president of Northwest Georgia Bank in Ringgold said a Federal Deposit Insurance Corp. report indicating the bank needs to improve its finances and operations is based on information received in 2008.

Northwest Georgia Bank president and chief operating officer Scott Smith also said the bank has taken steps since then to “strengthen our balance sheet and put us back on track to profitability.

The bank has branches in Walker and Catoosa counties, as well as other areas.

”We remain well-capitalized and have excess capital above the regulatory minimum requirements, while at the same time raising even more capital as required by the FDIC during these economic times.”

The FDIC says four other banks — First Bank of Dalton, Bank of Ellijay, Piedmont Community Bank in Gray, and High Trust Bank in Stockbridge — must also boost their capital levels and take steps to shore up their balance sheets.

Smith said the bank is “confident that our current strategies will bring us back to profitability in 2010. We are now maintaining the most conservative strategy in our 105-year history, with plenty of excess liquidity and excess capital.

“The most important point I want to affirm to our customers and the communities we serve is that we remain safe, sound and well-capitalized.”

He said anyone with questions or concerns should contact him at ssmith@nwgb.com or 706-965-3000.

The FDIC says the five have been added to the list of those needing to improve their finances and operations.

The new additions to the watch list of troubled Georgia banks comes as quarterly earnings reports showed fur-ther deterioration of the loan portfolios and capital positions of many already troubled banks. Industry watchers say more than a third of Georgia’s more than 300 banks are under some form of regulatory order.

Consent orders are considered less harsh than the cease and desist orders many Georgia banks have fallen un-der.

Consent orders are strong formal censure agreements between regulators and a troubled bank. Under the or-ders, banks do not admit fault, but must undergo a significant overhaul to satisfy regulators. Since the banking cri-sis began, dozens of Georgia banks have received cease and desist orders from regulators, often following a regula-tory exam.