Britton & Koontz Capital Corp. in Natchez, Miss., reported a third-quarter loss after a major setback in credit quality.
The $371.3 million-asset company lost $721,000 in the quarter, compared to a gain of $681,000 a year earlier. The company recorded a $3.4 million loan-loss provision compared to $150,000 a year earlier. (Its provision was just $1.3 million for the first half of 2011.) Nonperforming loans rose 31% from a year earlier, to $12.7 million, or roughly 3.4% of total assets at Sept. 30.
The company's kept its losses in check by selling investment securities during the most recent quarter. Such sales led to $2.1 million in noninterest income, or more than double what the company reported a year earlier.
Britton & Koontz disclosed in late September that it would restate its second-quarter financial report, due largely to an upward adjustment to its provision. The company ended up increasing its second-quarter provision 87% from its prior report, to $562,000.
