Four Oaks Fincorp Inc. in North Carolina is on the hunt for capital after a large fourth-quarter loss.

The $950 million-asset company said its loss in the quarter widened from $1.7 million a year earlier to $19.4 million. It cited higher credit costs rose and its creation of a $14.2 million valuation allowance against its deferred tax assets. At yearend Four Oaks' nonperforming assets were up 71% from a year earlier, to $54.7 million, or 5.76% of total assets.

Four Oaks was well capitalized at Dec. 31, with a 5.46% leverage ratio and a 10.79% total risk-based capital ratio. However, under a memorandum of understanding with the Federal Reserve it has set a goal of maintaining those ratios at 7% and 12%. As a result, the company said Friday, it is "actively assessing our alternatives for improving capital."

Four Oaks Fincorp said in late 2010 that it and Four Oaks Bank and Trust Co. were expecting a formal agreement with the Fed in the fourth quarter. So far there has been no announcement of such an agreement.

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