Second-quarter losses quadrupled from the previous quarter at PAB Bankshares Inc. in Valdosta, Ga.

The $1.2 billion-asset company on Monday posted a $21 million loss, compared with a loss of $5.3 million in the first quarter, and net income of $342,000 a year earlier.

PAB has reduced its assets by $166 million, or 13%, over the past year to try to alleviate pressure on its capital ratios. Yet it said it was "significantly undercapitalized" as of June 30, with a leverage ratio of 2.98%.

PAB, which has sold or closed 10 of its 23 banking offices since the beginning of 2009, said it will continue shrinking its balance sheet by selling problem assets over the next several quarters. It had a $17.1 million loan-loss provision in the second quarter, compared with $2 million in the first quarter.

It charged off $11.9 million, compared with $785,000.

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