Citing the weak market for financial stocks, Bank of Granite Corp. in Granite Falls, N.C., said Tuesday that it is abandoning a 5-for-4 stock split that had been scheduled for later this month.
Bank of Granite's shares have fallen by more than 40% since the $1.2 billion-asset company announced Sept. 23 that it intended to improve its capital position by suspending dividend payments to sharholders and that its board had approved the 5-for-4 stock split. Bank of Granite had paid a dividend for 219 consecutive quarters.
The split was to affect shareholders of record as of Oct. 17. "The decision not to split the shares is in light of current market conditions for financial stocks and the best interest of Bank of Granite shareholders," the company said.
Bank of Granite's shares were trading at $4.13 late Tuesday, down 1.2%.