CHARLOTTESVILLE, Va. - Guaranty Bank said Friday that it would add $900,000 to its loan loss reserve, bringing it in line with peer banks by taking loan loss reserves to 1% of total loans.
It said its net loans have increased 14% in the past year to $212 million.
Guaranty had been accruing $90,000 per month in an effort to reach 1% reserves by year-end, but decided it was prudent to bring the reserves total to that amount in the second quarter. The bank expects a profit for the year to date ending June 30.
The company said asset quality remains strong. The ratio of non-performing assets to total assets was only 0.79% March 31, compared to 0.87% at yearend, the bank said, adding that no loans were charged off in the first quarter.