Guaranty Financial Group Inc. in Austin, Tex., is conceding defeat.

The $14.4 billion-asset company said late Thursday that its thrift unit is essentially being run by the Office of Thrift Supervision and is likely to be seized soon.

Guaranty said amendments to its first quarter financial report left the thrift with negative capital ratios and raising additional capital is unlikely.

Guaranty had hoped for open bank assistance from the Federal Deposit Insurance Corp., but said that, given the changes in its report, such assistance is unlikely.

"In light of these developments, the company believes it is probable that it will not be able to continue as a going concern," Guaranty said in a Securities and Exchange Commission filing.

The core capital ratio at Guaranty's thrift was negative 5.78% at March 31. The total risk-based capital ratio was negative 5.52%.

The company said it is still working with the FDIC and the OTS as they seek "potential alternatives" for the thrift.

"In connection with this process, the OTS has directed that the board of directors of the bank consent to the OTS exercising its statutory authority to appoint the FDIC as receiver or conservator for the bank," the filing said. "If the FDIC is so appointed, the FDIC, rather than the board, would control the operations of the bank. The board has complied with the OTS demand for such consent, but the appointment of a receiver or conservator has not yet occurred. In the meantime the board continues to function, but the OTS is exercising a significant degree of control over what had heretofore been the functions of the board."

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