FGBC Bancshares Inc. in Franklin, Ga., has entered into a consent order with state regulators requiring it to boost capital ratios.

In its quarterly report filed Friday with the Securities and Exchange Commission, the company said the agreement, which took effect Aug. 11, requires it to achieve and maintain a Tier 1 capital ratio of at least 8%. At June 30, the $774.3 million-asset company had a Tier 1 ratio of 5.09%, and was considered "undercapitalized" for regulatory purposes.

FGBC acknowledged that its viability depends on its ability to raise substantial additional capital or significantly pare assets. "There is no guarantee that sufficient capital will be available at acceptable terms, if at all, when needed, or that the company would be able to sell assets at terms favorable enough to accomplish our regulatory capital needs," the company said.

FGBC, the parent company of First Georgia Banking Co., posted a $4.3 million loss in the second quarter, compared with a $3.1 million loss a year earlier.

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