Investment and insurance company BancTrust Financial Group has reported net income of $120,000 for the fourth quarter of 2007, compared to $2.2 million for the fourth quarter of 2006.

Basic and diluted earnings per share were $0.01 for the fourth quarter of 2007, compared to $0.20 for the fourth quarter of 2006. The earnings in the fourth quarter were negatively affected by a $7.5 million provision to the allowance for loan losses. The increase in the provision in the fourth quarter of 2007 was necessitated by an increase in non-performing loans and a deterioration in the housing market as well as the continuing uncertainty regarding economic conditions in the markets in which the company operates, particularly those in the coastal regions of southern Alabama and northwest Florida.

For the full-year period of 2007, net income was $6.2 million, compared to $13.3 million for the full-year period of 2006. Basic and diluted earnings per share were $0.49 for the full-year period of 2007, compared to $1.19 and $1.17, respectively for the full-year period of 2006.