CapitalSouth Bancorp Inc. in Birmingham, Ala., said Friday that it lost $17.2 million in the fourth quarter, largely because of a $17 million charge it took for impaired goodwill in connection with its September acquisition of Monticello Bancshares Inc. in Jacksonville, Fla.
Also contributing to the loss was a $2.1 million loan-loss provision it took that it said was "prompted by credit quality concerns associated with deteriorating economic conditions and growing weakness in the residential real estate sector."
CapitalSouth, with $767 million of assets, earned $859,000 in the fourth quarter of 2006. Its loan-loss provision for that quarter was $162,000. For all of 2007, CapitalSouth said it lost $15.3 million. It earned $2.9 million in 2006.
CapitalSouth acquired the $228 million-asset Monticello for $36.6 million.
CapitalSouth's stock was down 5.5% late Friday, to $7.47 a share. The shares have lost more than half their value since early July.
