GB&T Bancshares Inc. in Gainesville, Ga., said it would add $2.9 million to its loan-loss provisions - a move that could wipe out its second-quarter earnings.
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The $1.5 billion-asset company said Wednesday that it is boosting its provision in response to the recent bankruptcy filing of one of its borrowers. The borrower has five loans totaling $4.9 million. GB&T inherited the loans when it acquired Home Town Bank of Villa Rica at the end of 2002.
The $2.9 million increase would be on top of a $482,000 provision reported in the first quarter.
GB&T reported earnings of $3 million for the first quarter and $2.2 million for the second quarter of last year. It is scheduled to issue its second-quarter earnings report July 20.
