Guaranty Financial Group Inc. in Austin announced Tuesday that it swung to a $10 million loss in the first quarter from a $27 million profit a year earlier.
The $16.4 billion-asset company blamed a $58 million credit provision made in response to continued weakness in single-family construction markets in northern and central California. In last year's first quarter the company recovered $2 million. The amount provisioned as a percentage of total loans was 1.67%, up from 0.74% a year earlier.
Guaranty said nonperforming assets were $284 million, versus $179 million in the fourth quarter and $36 million in the first quarter 2007.
It said it eliminated more than 5% of its employees, or 135 jobs, during the quarter after an efficiency review.
Guaranty's shares fell 18.9% Tuesday, to close at $8.43.
