A soft housing market is forcing Capital Bank Corp. in Raleigh to write down the value of its assets by $2.6 million to $2.8 million this quarter.
After the stock market closed Wednesday, the $1.5 billion-asset Capital also announced that it plans to take a reorganization charge of $1.3 million to $1.4 million as part of its efforts to refocus on its core markets.
Mark Redmond, Capital's chief credit officer, said in a press release that it is writing down the assets' value because the current housing market is causing "difficulty in the liquidation process of certain nonperforming loans on our balance sheet."
The reorganization charge would cover costs related to the closing of certain facilities, outdated equipment, the depreciation of certain assets, as well as relocation expenses for new executives, and severance expenses for its outgoing chief financial officer, who is retiring at the end of the year.
