Bank of Granite Corp. lost more than $25 million in 2009 – but that was an improvement from 2008, when it lost $36 million.
The bank was helped by a tax “benefit” of $5.8 million for 2009. The year before, it had a tax “expense” of $4.6 million.
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Like individuals, companies generally don’t have to pay income taxes when they lose money for the year. Bank of Granite also benefited from a new tax law that lets companies “carry back” losses to the previous five years, and effectively get a rebate for taxes paid in profitable years.
Bank of Granite has been under strict regulatory sanctions since last year, and is still considered “undercapitalized” by one measure. The bank said in its filing that it does “not expect to meet the capital ratio requirements in the near-term future.”
Bank of Granite is based in Granite Falls, and its lending is focused in some of the most depressed areas of the state.
“Obviously we are very disappointed in another year of poor financial performance,” chief executive Scott Anderson said. “The markets we serve are severely challenged and we are working towards a better day. Unfortunately, many community banks are experiencing the same challenges.”