Bank of Granite Corp. of Granite Falls, N.C., said last week that its bank unit is undercapitalized.
The $1 billion-asset company reported in a Securities and Exchange Commission filing Thursday that it lost $9.3 million in the first quarter, widening its loss by 120% from a year earlier. The loss was driven by a $12.1 million provision for loan losses, up 220% from a year earlier. Nonperforming assets totaled $71 million, making up 6.85% of total assets, up 7% from the fourth quarter.
The company also reported that its bank had a leverage ratio of 3.71% and a total risk-based capital ratio of 6.83%, making it undercapitalized by regulatory standards. Regulators have ordered the company and the bank to boost the leverage ratio to 8% and the total risk-based capital ratio to 12%.