Facing capital depletion, Security Bank Corp. in Macon, Ga., is working to raise more, but its auditors question if it can survive.
The $2.9 billion-asset company said in an annual report filed Monday with the Securities and Exchange Commission that its auditors expressed "substantial doubt" about its ability to continue.
With nonperforming assets spiking to 11.5% of its total, Security Bank lost $254 million last year, compared with a $6.6 million profit in 2007. Four of its six banks were undercapitalized at yearend.
But Tony E. Collins, Security Bank's president and chief executive, said in a press release Tuesday that several initiatives are under way to ensure its "long-term viability." He said it hired two investment banking firms to explore strategic alternatives, including raising capital and selling branches and loans.
