The stock of South Financial Group Inc. fell sharply Wednesday, after the Greenville, S.C., company reported a $340.8 million third-quarter loss because of loan trouble.

Though the $12.3 billion-asset South Financial raised $280 million of capital during the quarter, the loss shrank its tangible common equity ratio by a hefty 82 basis points from June, to 5.25%, a level that some analysts considered worrisome.

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