Bank of the Carolinas Corp. fell into a deeper hole in the second quarter, posting a net loss of $9.9 million compared, to a loss of $415,000 a year earlier.
The Mocksville, N.C.-based company said earnings were "significantly" hurt by a higher provision for loan losses. Bank of the Carolinas raised its provision to $6.6 million, up from $1.1 million the same time last year and $2.3 million in the previous quarter.
Total nonperforming assets actually declined 11%, to $33.1 million, but were up 59% from last year's second quarter.
The $521 million-asset company also took a $273,000 charge related to a prepayment of its long-term borrowings as it sought to restructure its balance sheet to raise earnings and capital.
The company's subsidiary, Bank of the Carolinas, had a total risk-based capital ratio of 9.17% at June 30.
